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Islamic Green Finance and Corporate Governance: A Comprehensive Literature Review and Research Agenda

Author

Listed:
  • Daing Maruak Sadek

    (Academy of Contemporary Islamic Studies, Universiti Teknologi MARA Cawangan Kedah, Kampus Sungai Petani, Kedah, Malaysia)

  • Noor Syahidah Binti Mohamad Akhir

    (Academy of Contemporary Islamic Studies, Universiti Teknologi MARA Cawangan Kedah, Kampus Sungai Petani, Kedah, Malaysia)

  • Siti Aisyah Binti Yusof

    (Academy of Contemporary Islamic Studies, Universiti Teknologi MARA Cawangan Kedah, Kampus Sungai Petani, Kedah, Malaysia)

  • Muhammad Saiful Islam Bin Ismail

    (Academy of Contemporary Islamic Studies, Universiti Teknologi MARA Cawangan Kedah, Kampus Sungai Petani, Kedah, Malaysia)

  • Izatul Akmar Bin Ismail

    (Academy of Contemporary Islamic Studies, Universiti Teknologi MARA Cawangan Kedah, Kampus Sungai Petani, Kedah, Malaysia)

  • Mohd Shahid Azim Bin Mohd Saufi

    (Faculty of Business and Management, Universiti Teknologi MARA (UiTM) Kedah Branch, Malaysia)

  • Muhammad Zarunnaim Bin Hj Wahab

    (School of Economics, Finance and Banking, Universiti Utara Malaysia, Sintok, Kedah, Malaysia)

  • Hylmun Izhar

    (Islamic Development Bank Group, Jeddah, Kingdom of Saudi Arabia)

Abstract

Islamic green finance (IGF), rooted in Maqasid al-Shari’ah principles, has emerged as a critical mechanism for aligning ethical financial practices with environmental sustainability and corporate governance (CG) imperatives. However, despite its potential to contribute significantly to the Sustainable Development Goals (SDGs), the intersection of IGF and CG remains underexplored, particularly in terms of integrated frameworks, empirical validation, and cross jurisdictional applicability. This study addresses this gap by systematically analyzing the research landscape using Scopus AI analytics to map the conceptual foundations, identify key topic experts, and highlight emerging themes in the field. The primary aim is to develop a comprehensive literature review and propose a forward looking research agenda that strengthens the theoretical and practical linkages between IGF and CG. The analysis on 15 August 2025. The dataset was examined through summary and expanded summaries, concept maps, topic expert profiling, and thematic clustering to extract consistent, rising, and novel themes. Findings reveal three consistent themes Sharia governance in Islamic banks’ performance, Islamic sustainable finance through green sukuk, and corporate governance ESG integration alongside rising themes in IGF SDG alignment and legal frameworks for green finance. Notably, robust Sharia governance and diversified supervisory boards enhance both financial performance and sustainability outcomes. Theoretically, this study advances stakeholder and agency theories by embedding Islamic ethical dimensions. Practically, it provides policy insights for regulators, financial institutions, and investors to strengthen governance mechanisms and expand Shariah compliant green instruments. Limitations include the reliance on Scopus indexed, predominantly English language sources, underscoring the need for multilingual and empirical research in future studies.

Suggested Citation

  • Daing Maruak Sadek & Noor Syahidah Binti Mohamad Akhir & Siti Aisyah Binti Yusof & Muhammad Saiful Islam Bin Ismail & Izatul Akmar Bin Ismail & Mohd Shahid Azim Bin Mohd Saufi & Muhammad Zarunnaim Bin, 2025. "Islamic Green Finance and Corporate Governance: A Comprehensive Literature Review and Research Agenda," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(9), pages 9518-9527, September.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-9:p:9518-9527
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    References listed on IDEAS

    as
    1. Saqib Muneer & Ajay Singh & Mazhar Hussain Choudhary & Awwad Saad Alshammari & Nasir Ali Butt, 2025. "Does Environmental Disclosure and Corporate Governance Ensure the Financial Sustainability of Islamic Banks?," Administrative Sciences, MDPI, vol. 15(2), pages 1-25, February.
    2. Ahmad Ali Jan & Fong-Woon Lai & Muhammad Umar Draz & Muhammad Tahir & Syed Emad Azhar Ali & Muhammad Zahid & Muhammad Kashif Shad, 2022. "Integrating sustainability practices into islamic corporate governance for sustainable firm performance: from the lens of agency and stakeholder theories," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(5), pages 2989-3012, October.
    3. Hebah Shalhoob, 2025. "ESG Disclosure and Financial Performance: Survey Evidence from Accounting and Islamic Finance," Sustainability, MDPI, vol. 17(4), pages 1-26, February.
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