Integrating ESG and Maqashid Syariah Principles in the Islamic FinTech Ecosystem: Developing a Framework for Sustainable Digital Finance

Abstract

This study aims to develop a conceptual framework that integrates the principles of Environmental, Social, and Governance (ESG) with the values of maqashid syariah within the Islamic digital financial ecosystem (Islamic financial technology). This integration is intended to bridge global sustainability values with the ethical foundations of Islam, thereby strengthening the theoretical basis for the development of sustainable Islamic digital finance. The research employs a qualitative and conceptual approach using an integrative literature-based analysis method. Data were obtained from open-access academic journals, policy reports, and official publications issued by institutions such as the Financial Services Authority (OJK) and Bank Indonesia between 2020 and 2025. All literature was analyzed using content analysis and theoretical synthesis techniques to formulate a conceptual model called the ESG–Maqashid Syariah Integration Framework (ESMIF) as a new model in Islamic digital finance. The findings reveal a strong relationship between the dimensions of ESG and the objectives of maqashid syariah. The ESMIF model illustrates how digital transformation through Islamic fintech can operationalize environmental, social, and governance values in a sustainable manner while maintaining compliance with Sharia principles. The model also highlights the strategic role of fintech as a digital enabler in enhancing transparency, accountability, and inclusivity within the Islamic financial system. This study provides a theoretical contribution by offering an integrative model that combines global ESG principles and Islamic legal objectives through digital innovation, serving as a new framework for policymakers and practitioners in developing a green, ethical, and sustainable Islamic financial system in the digital era