HIFZ AL-DIN AND HIFZ AL-BI’AH: SHARIA COMPLIANCE IN ACHIEVING GREEN BANKING

Abstract

The study focuses on reconciling Islamic principles with environmentally friendly practices of Islamic financial institutions, which is divided into two main aspects: preserving faith (hifz al-din) and preserving the environment (hifz al-bi’ah). The primary challenge lies in addressing hifz al-bi’ah. This research aims to investigate the problems, solutions, and strategies for ensuring Sharia compliance in sustainable and environmentally friendly Islamic banking. The study employed a non-parametric qualitative approach using the Analytical Networking Process to analyze the perspectives of 9 informants from various backgrounds, including Sharia banking practitioners, academics, and regulators. The findings suggest that three key strategies can be taken to achieve Sharia compliance: improving human resources, enhancing Sharia supervisory board functions, and increasing environmental understanding through certification. Islamic Banks that adopt environmentally friendly human resource management practices reap greater benefits, including reduced carbon footprint, improved financial performance, and increased employee retention