BEYOND GREENWASHING: ISLAMIC BIOETHICS AS A FOUNDATION FOR AUTHENTIC GREEN FINANCE AND SUSTAINABLE DEVELOPMENT
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Environmental Governance, Islamic Bioethics, Maqasid al-Shariah
Abstract
Global sustainability efforts face increasing criticism due to the prevalence of greenwashing, where financial institutions claim environmental responsibility without demonstrating genuine ecological impact. Islamic finance, rooted in divine ethical accountability and the objectives of Maqasid al-Shariah, offers a distinctive theoretical foundation for authentic green finance. However, existing implementations often mirror secular ESG frameworks and risk reducing Shariah compliance to a symbolic label. This study aims to formulate Islamic bioethics as a guiding principle for green finance governance to ensure that environmental claims are substantiated by measurable protection of life and ecological systems. A qualitative research design was applied, combining theological text analysis, policy review, and expert interviews with Shariah scholars, ethical finance practitioners, and sustainability auditors. Findings indicate that Islamic bioethics—emphasizing preservation of life (Hifz al-Nafs), prevention of harm (Daf‘ al-Darar), and responsibility toward creation (Amanah)—can be operationalized as binding criteria for environmentally aligned financial products, especially in the assessment of environmental externalities and intergenerational welfare. The analysis identifies that instruments such as green sukuk, Islamic microfinancing, and social waqf can achieve stronger ecological integrity when guided by bioethical governance standards rather than minimalistic compliance screening. The study concludes that Islamic bioethics can transform green finance from a reputational strategy into a morally accountable system that supports genuine sustainable development. Policymakers and financial authorities are urged to adopt bioethical audit protocols and prioritize climate-positive investments aligned with Islamic moral objectives.
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Copyright (c) 2025 Ahmad Zainal, Kiran Iqbal, Olivia Davis
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
