Integration of ESG and SDGS Principles in Sustainable Sharia Trade Governance in the Global Digital Era

Abdul Rochim; Linggha Sennakyz; Nur Kholis; Ah. Ali Arifin

doi:10.55227/ijerfa.v4i2.413

Authors

Abdul Rochim Sharia Economics, Faculty of Islamic Economics and Business, Sunan Ampel State Islamic University, Surabaya, Indonesia
Linggha Sennakyz Sharia Economics, Faculty of Islamic Economics and Business, Sunan Ampel State Islamic University, Surabaya, Indonesia
Nur Kholis Faculty of Islamic Economics and Business, Sunan Ampel State Islamic University, Surabaya, Indonesia
Ah. Ali Arifin Faculty of Islamic Economics and Business, Sunan Ampel State Islamic University, Surabaya, Indonesia

DOI:

https://doi.org/10.55227/ijerfa.v4i2.413

Abstract

This study aims to develop an integrative governance model for Sharia-compliant digital trade by examining how maqāṣid al-sharīʿah, Environmental, Social, and Governance (ESG) principles, and the Sustainable Development Goals (SDGs) intersect conceptually. Using a narrative review approach, data were collected through purposive searches of academic databases and institutional sources covering Islamic governance, sustainability frameworks, and digital technologies. The selected literature was analyzed using thematic interpretive methods to identify recurring concepts and cross-domain linkages. The literature synthesis reveals four key findings. First, there is a strong convergence between Islamic ethical objectives and the global sustainability framework, as reflected in empirical evidence regarding the role of Islamic financial instruments—such as zakat and green sukuk—in reducing poverty and reducing carbon emissions. The integration of maqāṣid with ESG–SDG indicators also strengthens the moral dimension of sustainability and produces an evaluation framework more suited to Muslim societies. Second, traditional Sharia governance demonstrates significant limitations in addressing the digital ecosystem, particularly related to algorithmic bias, real-time technology audits, and the lack of digital capacity of Sharia Supervisory Boards. Third, digital trade carries ethical, environmental, and social risks not yet addressed by conventional compliance structures, such as systemic bias in AI, high energy consumption in data centers, and data extraction practices that compromise privacy and distributive justice. Fourth, the literature review points to the need for a new governance model that integrates the principles of maqāṣid, global sustainability indicators, and digital technology. This model reframes Sharia governance as proactive and systems-oriented, suitable for the ethical and technological demands of the digital era.

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