A Critical Literature Review on Sustainably Responsible Investment (SRI) and Shariah-compliant Financial Products
Bai Charity Pandita

1. Ramon V. Del Rosario - College of Business, De La Salle University, Manila, Philippines
2. School of Business and Governance, Ateneo de Davao University, Davao, Philippines

Abstract

Sustainably Responsible Investment (SRIs) and Shariah-compliant Investments are both gaining popularity worldwide. SRIs are ethics-based investments that aim to promote Sustainable Development Goals (SDG) without sacrificing investment returns (Yesuf and Aassouli, 2020). On the other hand, Shariah-compliant financial products are faith-based investments that follow the Islamic way of doing business, generally based on profit-sharing (Piad, 2021). While SRIs and Shariah-compliant products are different types of impact investing, they are deemed to share similar characteristics in taking ethical and moral aspects into consideration. Unfortunately, there is a scarce number of literature about these two concepts. In the Philippines, it was only in 2016 that certification of Shariah-compliant stocks started. The issue of interest that this paper aims to answer is, ^what are the available academic journals that discuss the relationship between Sustainably Responsible Investment (SRI) and stock performance of Shariah-compliant Companies?^ The method used in answering the research question is a critical review of the literature. Data are secondary in nature, and archival study has been employed. The author is expected to identify the research gap after performing a review of existing literature to contribute to the Philippine financial academic research pool. Lastly, the author will recommend the research design and approach based on recommendations of previous studies.

Keywords: Sustainably Responsible Investment- Shariah-compliant Investments- Sustainable Development Goals- Critical Literature Review

Topic: Green and blue Islamic Finance