KUALA LUMPUR, 14 JULY: According to Bank Negara Malaysia assistant governor Adnan Zaylani Mohamaf Zahid, action-oriented leadership is a critical component for leaders in Islamic finance institutions (IFIs) to push financial advancements toward sustainability. According to him, executives must have the motivation to foster a sustainability-focused culture within the organization, lead innovation to create value-driven and impactful solutions, and have a collaborative mentality to achieve holistic results.
“It is our sincere hope that by combining sustainability, innovation, and collaboration, we will be able to develop value-driven solutions and discover new avenues for synergistic collaboration,” he said in his opening remarks at the Sustainability Leadership Programme for Financial Institutions (FI) today.
While the pandemic and climate crisis have caused great upheavals, Adnan Zaylani believes they have provided an impetus for industry leaders to reset and reprioritise resources in order to re-steer economies and financial systems to be more sustainable and inclusive, with Islamic finance (IF) having a significant role to play.
He stated the Quran’s concept of vicegerency on earth, which stressed mankind’s responsibility to assume ownership of the preservation of riches and resources on earth, as well as the universal values of maqasid Shariah, chimed well with sustainability concepts.
“As a result, it’s no surprise that Islamic financial institutions have risen to the occasion, as indicated by the value-based intermediation (VBI) program and practices among Islamic banks and takaful operators.”
“When a result, as sustainability becomes a global movement, IFIs are in a position to take responsibility and influence financial changes, both inside financial groupings, sectors, and the broader community,” he said.
Outside of the financial sector, according to Adnan Zaylani, FIs could form partnerships with organizations that share similar sustainability goals, such as state religious authorities, waqf institutions, business industry associations, advocacy groups, or non-governmental organizations that work with vulnerable communities.
He suggested that financial institutions work with government organizations and utility companies to help consumers transition to energy-efficient homes and automobiles.
Beyond the present sustainable financial products that give favourable rates for the purchase of electric vehicles or green residential properties, he believes that more could be done to enhance consumer awareness and establish complementing infrastructure, such as charging stations./n
