The Prioritization of Sustainable Development Goals by Major Malaysian Islamic Banks: A Comparative Analysis
Abstract
The banking sector's alignment with Sustainable Development Goals (SDGs) is critical for advancing global sustainability efforts as it facilitates financial intermediation. A key issue remains the need for more consistency in how Islamic banks prioritize SDGs, making it difficult to assess their collective impact. This study aims to compare the SDG prioritization across Islamic banks in Malaysia, addressing the current variation in sustainability efforts. This study uses qualitative methods by analyzing existing frameworks in the bank’s Annual Report and Sustainability Report. Based on the comparative analysis, the study proposes a standardized SDG framework tailored to Islamic banks, ensuring alignment with Shariah principles and international sustainability standards. The findings highlight disparities in SDG prioritization among Islamic banks and suggest recommendations for more unified and effective sustainability strategies within Malaysia's Islamic banking sector. These insights could guide policymakers and banks toward more impactful sustainability initiatives.
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