Moody’s ESG Expects Global Investors’ Increased Interest in ESG to Boost Demand for Green Sukuk

Moody’s ESG Solutions (Moody’s ESG) states that the increased global demand for Environmental, Social and Governance (ESG) products by investors will help boost the demand for green Sukuk and attract more diverse and global investors. This is reflected through sustainable assets, which reached USD 40 trillion globally in 2020, higher than the USD 2.4 trillion total size of the Islamic Financial Services Industry. However, the Islamic Financial market’s dynamic is unlikely to change for at least the next one to two years given the complexity of green Sukuk and the delayed adoption of the energy transition agenda.

Why it Matters?

Investors in Shariah compliant products and sustainable investing have synergies in terms of their values a...