Climate change governance, Shariah governance quality, and financed emission mitigation: Evidence from Islamic banks in Southeast and West Asia
The financial sector holds major responsibility in climate mitigation, as the proliferation of environmental damage within the real economy largely stems from the negative externalities of the financial economy. Islamic banking, as a subset of the global financial market, is often adjudged as a prom...
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| Format: | Article |
| Language: | English |
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Borsa Istanbul Anonim Sirketi
2025
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| Online Access: | http://psasir.upm.edu.my/id/eprint/121144/ http://psasir.upm.edu.my/id/eprint/121144/1/121144.pdf |
| _version_ | 1848868304340385792 |
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| author | Issa, Saheed Olanrewaju Alabi, Abdulkadri Toyin Ubandawaki, Abdulbaki Teniola |
| author_facet | Issa, Saheed Olanrewaju Alabi, Abdulkadri Toyin Ubandawaki, Abdulbaki Teniola |
| author_sort | Issa, Saheed Olanrewaju |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | The financial sector holds major responsibility in climate mitigation, as the proliferation of environmental damage within the real economy largely stems from the negative externalities of the financial economy. Islamic banking, as a subset of the global financial market, is often adjudged as a promoter of ethical practices. This study investigates how climate governance mechanisms and Shariah governance quality influence Islamic banks’ mitigation of financed emissions. Data was obtained from the LSEG database and the annual reports of 28 sampled Islamic banks covering the period of 2019–2023. The results of logistic regression indicate that sustainability committees, sustainability reporting, and Shariah governance quality positively affect financed emission mitigation in Islamic banks. This study therefore recommends for Islamic banks to adopt robust climate governance mechanisms, as well as for regulators to institutionalize policies mandating sustainable finance. |
| first_indexed | 2025-11-15T14:50:16Z |
| format | Article |
| id | upm-121144 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T14:50:16Z |
| publishDate | 2025 |
| publisher | Borsa Istanbul Anonim Sirketi |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-1211442025-10-28T04:39:05Z http://psasir.upm.edu.my/id/eprint/121144/ Climate change governance, Shariah governance quality, and financed emission mitigation: Evidence from Islamic banks in Southeast and West Asia Issa, Saheed Olanrewaju Alabi, Abdulkadri Toyin Ubandawaki, Abdulbaki Teniola The financial sector holds major responsibility in climate mitigation, as the proliferation of environmental damage within the real economy largely stems from the negative externalities of the financial economy. Islamic banking, as a subset of the global financial market, is often adjudged as a promoter of ethical practices. This study investigates how climate governance mechanisms and Shariah governance quality influence Islamic banks’ mitigation of financed emissions. Data was obtained from the LSEG database and the annual reports of 28 sampled Islamic banks covering the period of 2019–2023. The results of logistic regression indicate that sustainability committees, sustainability reporting, and Shariah governance quality positively affect financed emission mitigation in Islamic banks. This study therefore recommends for Islamic banks to adopt robust climate governance mechanisms, as well as for regulators to institutionalize policies mandating sustainable finance. Borsa Istanbul Anonim Sirketi 2025 Article NonPeerReviewed text en http://psasir.upm.edu.my/id/eprint/121144/1/121144.pdf Issa, Saheed Olanrewaju and Alabi, Abdulkadri Toyin and Ubandawaki, Abdulbaki Teniola (2025) Climate change governance, Shariah governance quality, and financed emission mitigation: Evidence from Islamic banks in Southeast and West Asia. Borsa Istanbul Review, 25 (4). art. no. undefined. pp. 722-732. ISSN 2214-8450; eISSN: 2214-8469 https://linkinghub.elsevier.com/retrieve/pii/S2214845025000560 10.1016/j.bir.2025.03.011 |
| spellingShingle | Issa, Saheed Olanrewaju Alabi, Abdulkadri Toyin Ubandawaki, Abdulbaki Teniola Climate change governance, Shariah governance quality, and financed emission mitigation: Evidence from Islamic banks in Southeast and West Asia |
| title | Climate change governance, Shariah governance quality, and financed emission mitigation: Evidence from Islamic banks in Southeast and West Asia |
| title_full | Climate change governance, Shariah governance quality, and financed emission mitigation: Evidence from Islamic banks in Southeast and West Asia |
| title_fullStr | Climate change governance, Shariah governance quality, and financed emission mitigation: Evidence from Islamic banks in Southeast and West Asia |
| title_full_unstemmed | Climate change governance, Shariah governance quality, and financed emission mitigation: Evidence from Islamic banks in Southeast and West Asia |
| title_short | Climate change governance, Shariah governance quality, and financed emission mitigation: Evidence from Islamic banks in Southeast and West Asia |
| title_sort | climate change governance, shariah governance quality, and financed emission mitigation: evidence from islamic banks in southeast and west asia |
| url | http://psasir.upm.edu.my/id/eprint/121144/ http://psasir.upm.edu.my/id/eprint/121144/ http://psasir.upm.edu.my/id/eprint/121144/ http://psasir.upm.edu.my/id/eprint/121144/1/121144.pdf |