A key purpose for imposing Sharia is to maximize the benefit and minimize the harms to individuals and society with particular emphasis on the universal values of the protection of religion, life, intellect, family, and wealth. It directs investments toward responsible activity that benefits society. Conventional finance may not have the same ethical, environmental or social considerations as its primary objective is typically profit maximisation. ESG, impact investment and responsible finance bear some similarities in its objectives to Shariah-compliant investments. The difference is that Shariah-compliance is based on the teachings of the Quran and precedents derived from the life of Prophet Muhammad, peace be upon him.
Shariah Compliance