This study identifies and synthesizes patterns and trends in the emerging body of literature of environmental, social, and corporate governance (ESG) endeavors on the financial performance (FP) of the banking firms. It specifically aims to highlight the relationship of ESG–FP. The scoping review analysis is based on 1856 journal articles from two online databases, namely Scopus and Web of Science (WoS) for the period of 2015 to 2023. The analysis reveals inconsistent results regarding the ESG–FP relationship, with some studies reporting positive impacts, others negative, and several showing no significant relationship. Notably, non-linear studies consistently identify an inverted U-shaped relationship, suggesting that there is a threshold level of ESG investment beyond which additional investments do not yield proportional benefits. This indicates that threshold-based policies may be more effective at maximizing ESG benefits. The study also found that numerous studies suggested exploring the indirect effect or mediating variables in the ESG–FP relationship to better explain the FP variance. Thus, the study identifies a need for future research to explore indirect relationships by testing potential moderators or mediators, particularly bank risk-taking, to better understand the ESG–FP dynamics. Policymakers and regulators should adopt non-linear analytical approaches and set threshold-based ESG investment policies, while bank management should strategically invest in ESG activities, integrating ESG considerations into risk management frameworks. Continuous monitoring and evaluation, along with stakeholder engagement, are crucial for optimizing ESG investments. By adopting these strategies, banks can enhance financial performance and contribute to sustainable and responsible banking practices.

Purpose: This paper aims to integrate Islamic and mainstream economics framework towards a more realistic understanding of Muslim consumption behaviour. Design/methodology/approach: The model incorporates some of the Islamic institutions like period-wise deduction of Zakat from endowments. It also includes bequests which could be significant given the Islamic injunctions on inheritance distribution and the significance placed on the institution of family. Furthermore, the model integrates the assumption that consumption opportunity set will axiomatically filter out the prohibited consumption goods from the consumption set in both contemporaneous and inter-temporal consumption. Findings: Zakat ensures contemporaneous redistribution from endowment surplus households (those having Zakatable endowments above Nisab) to endowment-deficient households (those having Zakatable endowments below Nisab). The lifetime resources are scaled down for endowment surplus households because of the payment of Zakat in both periods and leaving bequests in old-age period, while the lifetime resources are scaled up for endowment deficient households because of the receipt of Zakat in both periods and receiving the bequests in youth. Originality/value: The authors show how some of the Islamic principles and institutions can be integrated in the mainstream economics framework, especially in research studies where the objective is to understand and describe reality rather than persuasion and idealization.

This study examines the impact of aggregate and disaggregate environmental, social and corporate governance (ESG) activities on the financial performance of banking firms in the ASEAN-5 countries, a critical market characterized by its bank-based financial system. The analysis draws on data from 32 listed banks in Indonesia, Malaysia, the Philippines, Singapore and Thailand over the period 2015 to 2022 using a two-step Generalized Method of Moments and Least Squares Dummy Variable estimators. By incorporating macroeconomic, bank-specific and financial development indicators, the findings reveal that the aggregate ESG activities positively influence financial performance. Consistently, the disaggregate (individual pillar) ESG activities of social and governance posit positive impacts on FP, whilst the environmental pillar shows no significant influence. These findings underscore the heterogeneous contributions of the individual ESG pillars to bank performance in the ASEAN-5 context. By disaggregating ESG activities into their respective pillars, this study contributes to the literature by offering pillar-specific evidence on the ESG–FP relationship, moving beyond the conventional focus on aggregate ESG. Practically, the findings imply the need for tailored ESG strategies to ensure profitability of banks in ASEAN and other developing markets. Policymakers are encouraged to develop and enforce robust ESG regulations both at country and ASEAN levels to support sustainable banking activities and further promote financial stability in the region.

Sustainability certifications have been introduced for the palm oil industry to ensure its sustainable operation and the production of highly demanded palm oil. At present, there are several sustainability certifications in the market, namely the Roundtable on Sustainable Palm Oil (RSPO), the Malaysian Sustainable Palm Oil (MSPO), and the Indonesian Sustainable Palm Oil (ISPO) certifications. As the crude palm oil (CPO) becomes the largest product been produced and exported in the palm oil industry, it is assumed that the major CPO producers would adhere to the call for sustainability practices by producing certified palm oil. However, the additional cost of acquiring sustainability certification might hinder them from doing so. Besides, it is unclear on the effect of these certifications on firm profitability since there are very few studies have provided quantitative evidence empirical research focuses specifically on the sustainability certification in palm oil industry context. Thus, this intends to fill this gap by examining the effect of local, that is, MSPO or ISPO and international, that is, RSPO certifications on the financial profitability of the world’s top 20 CPO producers which comprises of the leading global palm oil companies based in Malaysia and Indonesia for the period of 2013 to 2018. General Least Regression is employed due to the problems of non-normality of data, heteroscedasticity, and autocorrelation. The main variable under investigation in this study is RSPO, MSPO, and ISPO, proxied by dummy variable. The results showed no significant difference in profitability of locally certified and non-certified CPO producers. Meanwhile, CPO producers with international certification, that is, RSPO recorded reduced profitability of 5% compared to locally certified producers. Hence, the adverse effect of sustainability certifications calls for intervention from both Malaysian and Indonesian governments as well as palm oil authorities in the respective countries, for example, introduction of tax incentives and/or subsidies to compensate for the reduced profitability and the cost of certification.

Good agricultural practice (GAP) helps increase productivity by producing fresh fruit bunches (FFBs), and selling FFBs will increase Independent Smallholders’ (ISH) income. However, although GAP promotes increased productivity, the effectiveness of GAP in delivering the well-being of the ISH in oil palm production areas remains to be determined. To that end, this study (i) measures the smallholder’s well-being index, (ii) compares the well-being index by states in Malaysia, and (iii) maps the relationship between GAP implementation, productivity, and well-being. The study selected respondents using purposive sampling (PS). PS identifies and selects individuals with Malaysian Sustainable Palm Oil (MSPO) certification and knowledge and experience of GAP. As a result, the research interviewed 564 ISHs with MSPO certification from 162 Sustainable Palm Oil Clusters (SPOC). The study used Principal Components Analysis (PCA) and the Structural Equation Model (SEM) framework to achieve the objectives. The study found that the average ISH well-being index was 0.62, and ISHs in Sabah had the highest well-being, with 0.73 compared to other states. The study also found that GAP influences productivity and is positively and significantly related to well-being. Therefore, it indicates to ISHs and the government the importance of GAP implementation to increase ISHs’ productivity and well-being.