An Islamic crowdfunding platform has carved a name for itself by joining the United Nations Global Compact, a feat very rarely achieved by Shariah banks despite the Islamic finance industry’s strong alignment with ethical and sustainable finance.
Singapore-based Ethis Ventures became the first Shariah compliant crowdfunding platform in the world to join the United Nations Global Compact, setting the path for other Islamic fintech companies and Shariah finance institutions to do so.
The UN Global Compact is a global corporate sustainability initiative to guide and support participating companies to do business responsibly across different areas including the environment, governance and financial markets and has so far lacked Islamic finance participation. Apart from Ethis Ventures, Bahrain’s Al Baraka Banking Group is another fully-fledged Shariah finance firm which has committed to the UN Global Compact.
As a signatory, participants are expected to publically advocate the UN Global Compact and its principles as well as publish in their annual report or similar corporate report (eg sustainability report) a description of the ways in which they are supporting the UN Global Compact and its 10 principles.