Development of Islamic Accounting Sustainability Model

Abstract

Purpose – The model of Islamic accounting development on ESG (Environmental, Social, and Governance) aims to promote sustainable accounting practices that reflect Islamic principles in asset and investment management. ESG emphasizes the social and environmental responsibility of companies, as well as good corporate governance. Design/methodology/approach – Literature research is included in qualitative research methods. To conduct Islamic accounting research in Environmental, Social, and Governance (ESG) literature. This research was conducted by the SLR method or systematic literature review by collecting data through the PRISMA method sourced from the Scopus database. Findings – Finding research era of sustainability and developing sustainable economic and accounting models are increasingly important to create an economy that balances social, economic, and environmental welfare. Sustainable Islamic economics and ESG are two complementary approaches to achieving this goal. In this context, the Islamic accounting model in ESG can be a solution to achieve holistic sustainability goals.  Theory implications – The emphasis on environmental, social, and governance aspects in the ESG model expands the scope of Islamic accounting. This model not only focuses on the dimensions of Islamic compliance but also takes into account the social and environmental impacts of business activities.  Originality/value- This model integrates Islamic and ESG accounting principles, allowing companies to apply sustainability values in their operations and improve their sustainability performance.