K. Kamilah, PhD – Magister of Sharia Accounting Department, Universitas Islam Negeri Sumatera Utara, Deli Serdang, Sumatera Utara, Indonesia
Achmad Firdaus, PhD – Postgraduate Program, Institute Agama Islam Tazkia, Bogor, Jawa Barat, Indonesia

Part of the Book: Advances in Business and Management. Volume 24
Chapter  DOI: 10.52305/DIFN4503

Abstract

Sustainable financing for green businesses is becoming an increasingly prominent topic among academics, practitioners, and policymakers. Amidst environmental unpredictability and increasing concerns about climate change, green enterprises have a vital function in advancing sustainable economic development while tackling ecological equilibrium. Nevertheless, a significant obstacle encountered by green businesses is obtaining sufficient financial support to maintain their innovation and expansion. From an academic standpoint, the principles of Islamic finance and Islamic spirituality provide a distinct and potentially influential perspective of enhancing sustainable financing for green businesses. This chapter discusses sustainable financing for green businesses, examining it through the lenses of Islamic finance and Islamic spirituality. The chapters explore the origins of sustainable financing and the rise of environment-friendly enterprises. It also evaluates how the principles of Islamic finance and the values of Islamic spirituality can be utilized to bolster green businesses. The research methods utilized in this writing encompassed a thorough examination of the relevant literature, analysis of primary and secondary sources, and evaluation of global best practices. Based on this analysis, the principles of Islamic finance, including the prohibition of interest, speculation, and emphasis on justice in wealth distribution, can serve as a robust basis for sustainable financing in the realm of green businesses. In making responsible and sustainable business decisions, one can also draw guidance from the values of Islamic spirituality, such as social responsibility, balance, and sustainability.

This research implies that the integration of Islamic finance, Islamic spirituality, and green businesses can create a more sustainable and resilient business model amid increasingly complex environmental and economic challenges. Moreover, it can contribute to increasing stakeholders’ understanding of the significance of sustainable funding for environmentally friendly enterprises, including corporations, investors, governments, and the public.

Keywords: sustainable financing, green business, Islamic finance, Islamic spirituality

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