Responsible Investment, with a focus on Environmental, Social & Governance (ESG) elements and integration of ESG in the investment process, is an emerging trend for financial institutions. ESG factors cover a wide spectrum of issues that have not traditionally been part of financial analysis but may have financial relevance. This might include how companies respond to climate change, how they manage the halal value chain, how they treat their workers and whether they have a corporate culture that builds trust and encourages innovation. ESG is important because there are several financial benefits that are correlated with companies pursuing high ESG performance. For example, green investment funds and socially responsible investors are more likely to fund companies with good ESG scores.

Islamic finance has the same basic principles as sustainable finance, namely financial stability and economic growth, poverty alleviation and distribution of wealth, financial and social inclusion and environmental preservation. Therefore, it allows Islamic finance to leverage this commonality to become a natural vehicle for spreading elements of green finance which has not yet been analyzed through the perspective of religious ideology (Bukhari et al., 2019). If this is not considered, it will have an impact on global environmental degradation and resource depletion. The solution is to adopt moral, spiritual and religious beliefs. Religion can influence and shape individual behavior towards the natural environment, both consciously and unconsciously.

Islamic finance industry aims to advance companies that are included in sectors or industries that provide added value to the real economy. Investments in fixed-income financial instruments, such as preferred stock, bonds and some derivatives (such as options) are unacceptable, as they promise a fixed rate of return and do not provide voting rights. In addition, Islamic investors are not allowed to buy shares of companies whose main business activities are alcohol, gambling, conventional financial services, entertainment, products related to pork, tobacco and weapons.

Along with this growth, ESG and Islamic funds are also growing very fast, having around $60 trillion in assets managed by signatories to the PRI (Principles for Responsible Investment). Islamic Funds is also a fast-growing sector representing $1033 billion of Islamic assets under management. Many investors are attracted to ESG funds and Islamic funds primarily because of the recent scandals in the ethics literature, and with much focus, because of the financial crisis and subsequent negative impact on conventional funds. In light of this trend, Muslim investors are left with the choice of investing in Islamic mutual funds, Islamic investment is showing considerable strength and resilience in the face of the global financial crisis, thus adding to the popularity of this type of Islamic fund (A. & R, 2022).

As the fourth most populous country in the world, with around 270 million people Indonesia is rich in both renewable and non-renewable resources. Moreover, Indonesia as one of the largest Muslim countries in the world still lags behind Malaysia in terms of sharia financial fundamentals. In addition to the need for an increasing trend of sharia returns, in line with the increasing number of needs and potential for investment as the largest Muslim population in the world, the opportunity to develop sharia investment is getting bigger. Islam attaches great importance to the moral, environmental and social dimensions, there are several verses of the Qur'an that define and praise the environment, and encourage people to protect it.

Both the concept of ESG Investment and Islamic finance, both have almost the same value. Sharia investment is carried out based on sharia principles with the aim of achieving Maqasid Sharia (i.e., protecting the soul, religion, mind, lineage and property). Even in the ESG investment concept, screening of certain business fields is required. However, sharia investment will continue to prioritize religious aspects in all of its activities and prohibit investing in businesses that are not in accordance with sharia principles, whereas in the ESG investment concept, derivatives are permitted. The investment will be made in the company with the highest ESG score. However, such selection does not exist in Islamic investing.

As a matter of fact, the growth of Islamic bank customers in Indonesia is still low. The low growth of Islamic bank customers is due to weak Islamic bank customer loyalty, only 33.75% of Islamic bank customers are loyal in the form of customer interest in making repeat purchases and recommending Islamic banks to other parties. One of the important factors of customer loyalty is satisfaction. if the customer is satisfied, the customer will not hesitate to recommend inviting other people to become a customer of the bank.

Sustainable development focuses on the overlapping factors between Islamic finance and ESG investments, namely economic, environmental and social impacts. Therefore, this paper offers insight into the ESG investment model from an Islamic perspective, particularly with regard to the concepts of Maqasid Sharia and maslaha mursala. Thus, it can be explained the similarities between the principles of ESG Investment and the values ​​carried by Islam through the Maqasid Sharia principles. As such, it has the potential to attract more interest from publicly traded companies as they seek to fulfill their social goals without compromising their sideline operations (Rahmaningsih, 2021).

(Rifka & N.F, 2021) study reports that almost all companies show Good Corporate Governance, but only a few companies have sustainability reports. Therefore, new parameters for screening the screening process for Islamic stocks are urgently needed. In another result, research of (Syed, 2017) entitled Environment, Social, And Governance (ESG) Criteria and Preference of Managers explain that managers of both countries support doing social work simultaneously while earning profits. As per our results, British managers have the belief that CG is the fiduciary duty of the company while French managers believe in supporting ESR as the fiduciary duty of the company. Managers of both countries have the confidence the same that ESR is demanded by the Government, ESR will manage investment risk better and etc.

So that the purpose of this Systematic Literature Review (LSR) is to identify and analyze the empirical literature in recent years regarding ESG and Maqasid Sharia implemented in Islamic Banks. Through this system, the findings of previous researchers can be clarified so that they can find new strategies needed by Islamic banking in Indonesia. Another contribution is the importance of the relationship marketing dimension in Islamic banking, which will help the development of Islamic banking in Indonesia.

This type of research is descriptive research using the Systematic Literature Review/Structured Article Review method. Systematic Literature Review is defined as the process of identifying, appraising, and interpreting all available research evidence with the aim of providing answers to specific research questions.

This review method was carried out through a literature search originating from the Google Scholar database and Google. The research data population is journals with a focus on Environment, Social and Governance (ESG) and Islam with 853 titles/articles and 20 titles/articles that are appropriate to the research topic and 20 titles/articles that are suitable as samples.

Systematic Literature Review in this study was carried out through three stages, namely planning, implementing and reporting the literature review. The following are the steps taken in conducting research based on Systematic Literature Review:

In the scheme above, SLR is carried out in three stages: planning, implementation and reporting of literature. In the first step the requirements to be identified. Then, systematically identify and review the problems of Islamic banking in Indonesia. The protocol is designed to guide implementation and reduce researcher bias. In the second step, it defines the questions, the search strategy, the process of selecting studies with inclusion and exclusion criteria, the assessment of quality, and finally the process of data extraction and synthesis. The third step is a report by concluding the research results based on the literature that has gone through the first and second processes, then discussing them in the research results and conclusions (Latifah & Iskandar, 2020).

SLR approach research is guided by research questions. The Research Question (RQ) was created so that the systematic review carried out in the study remains focused. Research questions were prepared with the help of PICOC criteria, namely Population, Intervention, Comparison, Outcomes and Context. The following is a PICOC:

The Research Questions built in this study attempt to identify the methods and analysis techniques, the difference between Green Banking institutions and Islamic banking institutions, the role of Islamic Banks in promoting ESG through their financing, the challenges and obstacles of ESG and the countries that apply it, the shared values ​​of Islamic Finance and ESG. They also strive to find answer question about how does ESG investment look like from the perspective of Maqasid Sharia.

A literature search strategy is used to obtain relevant sources to answer the research question (RQ). The search process was carried out using the Google Chrome search engine: Google Scholar, Garuda Portal and Google to find primary sources. Subsequently, inclusion and exclusion criteria were used to select the primary studies. These criteria are shown in the following table:

The selected primary studies were extracted then collected data that contributed to answering this research question. It then performs a quality assessment to guide in the interpretation of the synthesis findings and to determine the strength of the conclusions outlined. The purpose of data synthesis is to collect evidence from selected studies to answer research questions. Data synthesis was carried out by grouping similar extracted data according to the results measured to answer the research objectives. Research journals that match the inclusion criteria and exclusion criteria are then collected and a summary of the journal is made including the name of the researcher, year of publication of the journal, research title, method and summary or findings (Fatmariyah et al., 2021).

Thus, the type of Systematic Review that the researcher uses is a Mixed Method, namely a mixed method of searching and evaluating literature. Literature search criteria are carried out in both qualitative and quantitative research. It aims to enhance the integrity of research findings. There are several articles used as references in this paper with mixed results. The following is the result of data abstraction and analysis.

The results section summarizes the data collected for the study in descriptive statistics and reports the results of relevant inferential statistical analysis (e.g., hypothesis tests) conducted on the data. You need to report the results in sufficient detail so that the reader can see which statistical analyses were conducted and why and to justify your conclusions. Mention all relevant results, including those at odds with the stated hypotheses (American Psychology Association 2001: 20). There is no fixed recipe for presenting the findings of a study. Therefore, we will consider general guidelines and then focus on options for reporting descriptive statistics and hypothesis test results.

Based on the discussion, the following framework is proposed which describes Green Banking harmony between Islam and Green Banking through the ESG dimension. Islamic teachings are fully aligned with the various dimensions of Green Banking, making the adoption of Green Banking a must for Islamic banks. By adopting Green Banking through the dimensions and sub-dimensions discussed above, Islamic banks can implement a holistic Islamic business ideology and capture the vast and lucrative Muslim consumer market. Green Muslim consumers are an untapped market that can be captured through the adoption of Green Banking by Islamic banks (Bukhari et al., 2019).

This research also supports the views of Hayat and Kabir Hassan in 2017, who argue that focusing on ESG criteria in sharia screening will improve the quality of Islamic companies. The “Islamic” label is not only a marketing label but also a quality certification. Therefore, as a result of this study, investors should invest in Islamic companies that have good performance in terms of ESG. For policy makers, this research can also be used as a reference for developing Islamic finance that is more focused on sustainability issues including socio-economic and human development by improving the screening quality of Islamic companies (Qoyum et al., 2022).

In encouraging legal and regulatory initiatives and the growing recognition of Islamic values-ESG by asset managers in the Islamic funds industry provides a boost for overall responsible finance. The sharia-compliant SRI funds sector is also expected to expand due to increased demand from value-based investors. This is illustrated by the increasing evidence that investment portfolios integrated with ESG tend to outperform the market. In line with the government's continuous efforts to increase the number of green companies, public awareness about the similarities between Islamic finance and ESG/green finance should be emphasized. This will encourage companies to be registered as Shariah and ESG compliant entities (Miskam & Abdullah, 2021).

Islamic companies and investors who adopt ESG scores as part of their strategy, demonstrate the attractiveness of Shariah-compliant entities that are highly engaged in CSR, in terms of market risk implications. From an asset management perspective, our results unbox the benefits of integrating ESG and Sharia screening processes to build proficient risk-adjusted portfolio returns, especially during exogenous shocks, such as the Global Financial Crisis. Finally, we suggest that future research consider testing the response to profitability, productivity, efficiency, or other risks in similar settings, or simply verifying our assumptions during the COVID-19 crisis. In addition, further methods based on measures of Shariah-compliance time variance may add useful information to better understand its interactions with ESG examinations (Hassan et al., 2021).

Evidently, Shariah compliance screening can do a lot to improve ESG performance because they have a lot in common. However, combining the two can improve overall risk-adjusted returns. ESG integration and active ownership activities are less common in Islamic finance. Although a focus on social issues characterizes Islamic and ESG investment approaches, environmental considerations currently appear to be lacking in focus within the Islamic finance industry. Seen from topic above, the role of Islamic Banks in promoting ESG through their financing, the challenges and obstacles of ESG and the countries that apply it, the shared values ​​of Islamic Finance and ESG, does ESG investment look like from the perspective of Maqasid Sharia become solution to implementation in others company.

Addressing the barriers and challenges related to ESG integration is one of the first steps towards achieving a better ESG score. Some of the solutions include knowledge sharing and training for all staff, which increases awareness and understanding of the topic. The investment team needs to be thoroughly educated on this topic as they are responsible for ensuring that ESG is properly integrated, which includes understanding the company's transparency regarding environmental and social practices. In addition, a flexible ESG materiality framework can be developed, reviewed, and updated from time to time to address changing social and corporate governance norms, as well as environmental concerns.

Evidently, Shariah compliance screening can do a lot to improve ESG performance because they have a lot in common. However, combining the two can improve overall risk-adjusted returns. ESG integration and active ownership activities are less common in Islamic finance. Although a focus on social issues characterizes Islamic and ESG investment approaches, environmental considerations currently appear to be lacking in focus within the Islamic finance industry.

However, the integration of ESG and active ownership practices complement Islamic finance practices, and environmental concerns are consistent with the basic principles of sharia. As Islamic investors pursue sustainable risk-adjusted returns on their investments, there are more possibilities to integrate ESG factors into decision-making and engage in active ownership activities to improve investment performance while aligning financial goals with social and environmental goals. Ultimately, integrating ESG and Sharia compliant practices will lead to a better society and higher employee commitment and better financial performance and serve as a guideline to attract Islamic institutions in fulfilling Maqasid Sharia and Maslaha. For future researchers, it is hoped that they will look more at strategies, the potential for using SWOT analysis, and other solutions so that ESG and Maqasid Sharia can be applied in all institutions, especially Islamic banking. considering that this paper is still not complete with some analysis.