Standardising Responsible Islamic Finance – A Review of Green, Social and Sustainability Sukuk

Edana Richardson

Department of Law - Faculty of Social Sciences - The National University of Ireland, Maynooth

Abstract

Conventional responsible finance provides investors with an opportunity to combine financial returns with broader societal impact in their investment activity. This emphasis on financial and extra-financial considerations has led to suggestions that there are innate similarities between responsible finance and Islamic finance. It has not been until recently, however, that the sukuk market has sought to establish its place within the wider responsible finance market. This has led to debut issuances of green, social and sustainability sukuk, and the piecemeal development of precedents for future issuances. This article explores legal aspects of the nascent responsible finance sukuk market. In doing so, it provides an in-depth discussion of the legal structure of responsible finance sukuk issuances, the growing standardisation of these issuances and reflects on the future of the responsible finance sukuk market. Please see attached extended abstract for further background and the aims of this paper.

Keywords

Sukuk, Islamic Finance, Responsible Finance, Green Finance, Social Finance