Next steps in responsible finance require research, awareness building to support growth and convergence towards universal values

Following the conclusion of the Responsible Finance Summit, the Responsible Finance Institute (RFI) Foundation is excited to build on the conclusions brought to light during the Summit to support the next steps on the path towards identifying a universal value proposition for responsible finance.

During the Summit, which was hosted by Bank Negara Malaysia, a common theme emerged of the need to raise awareness about responsible finance and the connection between Islamic finance and environmental, social and governance (ESG) approaches. 

In many emerging markets in Asia, there has been growth in parallel of Islamic investors pursuing a Shariah compliant approach while traditional responsible investors focus on using ESG to identify and mitigate material risks through greater engagement.  Even as these two sectors operate with different approaches, they are fundamentally aligned around common principles which will facilitate their cooperation and convergence to make their work more effective. 

Professor Datuk Rifaat Ahmed Abdel Karim, Chairperson of the RFI Foundation commented: “We were pleased to see such lively interaction between the different forms of responsible finance whose dialogue during the Summit shows that there exists a universal value proposition uniting the different approaches used by Islamic finance and other forms of responsible finance.”

In doing so, the RFI Foundation is excited to bring the financial sector stakeholders together to find opportunities to work together to highlight the benefits that each of their approach can have when used alongside the other, to improve performance, lower risk and increase the impact they have on economic sustainability. 

Blake Goud, the CEO of the RFI Foundation commented: “One of the issues that was highlighted as being of particular importance, and one that I hope the RFI Foundation’s work will help to address, is a challenge of misperceptions about responsible finance faced by Islamic and traditional responsible finance.  Raising awareness about responsible finance—among asset managers, asset owners, governments and the wider public—will be key for responsible finance to converge around a universal value proposition.”

The priorities for the RFI Foundation, centred around research and awareness-building. will support the convergence between Islamic and traditional responsible finance in the coming years.  We appreciate the support of our host, Bank Negara Malaysia, and our co-organiser, Middle East Global Advisors in making the Responsible Finance Summit a success and a first step on the road towards cultivating a financial sector that is inclusive and responsive to society and supportive of equitable, inclusive and sustainable economic growth.