ADVANCING SUSTAINABLE ISLAMIC FINANCE: A SYSTEMATIC REVIEW OF VALUE-BASED SUKUK INSTRUMENTS AND THEIR CONTRIBUTION TO THE SDGS

Abstrak

This study analyses the development of value-based sukuk within sustainable finance through a Systematic Literature Review (SLR) following PRISMA guidelines, screening 143 records from Google Scholar, Scopus, Web of Science, and DOAJ (2015–2024) and ultimately including eleven peer-reviewed publications in the qualitative synthesis. The study focuses on green sukuk and waqf-linked sukuk as the two most representative value-based instruments: green sukuk operationalise environmental ethics by financing climate mitigation, renewable energy, and ecological restoration, while waqf-linked sukuk strengthen Islamic social finance through long-term welfare programs. The review synthesises conceptual, regulatory, and empirical insights to evaluate how these instruments translate Islamic finance's ethical foundations into contemporary sustainability practices. The findings show that green sukuk contribute to a broad range of SDGs—particularly SDG 7 (Affordable and Clean Energy), SDG 11 (Sustainable Cities), and SDG 13 (Climate Action)—while waqf-linked sukuk align closely with SDG 1 (No Poverty), SDG 3 (Good Health), and SDG 4 (Quality Education). However, the literature reveals fragmented regulatory frameworks, inconsistent sustainability taxonomies, and limited transparency mechanisms that constrain broader effectiveness. Methodologically, existing research is dominated by qualitative approaches, with few quantitative models available to measure environmental or social impact. The study contributes by clarifying the complementary roles of green and waqf-linked sukuk, providing the first systematic SDG-specific mapping of both instruments, and identifying methodological and governance gaps that must be addressed to strengthen regulatory harmonisation, impact-assessment tools, and maqāṣid–ESG integration.