Today, Islamic financial companies and consumers are all seeking ways to accelerate the transition to a lower-carbon energy future. They all want to deal with Sharia compliant products but also want to understand the environmental impact of their transactions and benefits of the entire value chain.
While there are organizations across a variety of industries who have developed approaches to help consumers understand the environmental effects but Sweden based Doconomy believes it’s Åland Index Solutions has a unique opportunity to make a powerful impact. Used by 60 million customers globally, the Index helps track the CO2 emission and water footprint of every transaction you make. Their tool allows you to quantify and measure the impact of your consumption by connecting your spending patterns with climate impact. This approach provides you an innovative experience for everyday climate action!
We have been engaged as the Sharia Advisor to the Index to help ensure that its methodology, design, UNFCCC projects and datasets are consistent with Sharia principles. In developing the Sharia compliance approach we’ve leveraged our review on the index composition, industrial breakdown and measurements of emissions including their calculation and quantification models for both carbon and water footprints. As the effects of climate change continue to emerge, we believe the Index and its datasets will continue to evolve and so will our Sharia assurance framework.
Tackling global challenges takes time but we hope Islamic financial institutions and consumers will explore the adoption of this Index and help accelerate the transition to a lower-carbon energy future!