Evaluating Environmental Sustainability Practices in Bank Syariah Indonesia

Green Banking and Maqashid al-Syari’ah:

Abstract

This study explores the implementation of green banking practices in Bank Syariah Indonesia
(BSI) through the lens of Islamic economic ethics and sustainable finance principles. The
research seeks to understand how Islamic banking institutions integrate environmental
responsibility within their financial operations, investment decisions, and corporate governance
structures. Using a qualitative descriptive approach, data were collected through
documentation, literature review, and secondary reports from regulatory authorities and BSI’s
sustainability publications. The findings indicate that BSI has adopted various environmentally
conscious initiatives such as green financing, paperless transactions, and eco-efficient
infrastructure. However, the implementation remains partially instrumental, focusing more on
regulatory compliance than on transformative commitment to sustainability. From an Islamic
perspective, these efforts resonate with the principles of Maqashid al-Syari’ah—particularly the
preservation of life (hifz al-nafs) and wealth (hifz al-mal)—but require deeper
institutionalization through strategic alignment with the Sustainable Development Goals (SDGs)
and Islamic Environmental Governance. The study contributes to the growing discourse on
Islamic sustainable finance by emphasizing that true green banking must embody not only
environmental prudence but also spiritual accountability and social justice.