RESOURCES-TYC FINANCE

ESG

The modern Islamic finance and environment, social and governance (ESG) investments took shape in the 1970s, but in fact it was practiced even before the 20^th century. Currently in the Middle East, these two forms of investments are respectively growing at different speeds, notwithstanding the obvious potential of overlaps in these products. Islamic finance and ESG investment are financing and investment forms that complement each other because of a number of shared principles, such as emphasis on safeguarding social and environmental benefits. Both system offer similar products to Muslim and non-Muslim investors, they share more similarities than differences and they can learn from each other as both feature strong practice and policies.

At present, increasingly more companies, investors and even regulators focus their attention on ESG and SDGs of the United Nations, with all major stock exchanges around the world and enterprises having laid their groundwork for ESG. In our opinion, ESG and the targets of SGDs formulated by the United Nations are closely related to sustainable investment or sustainable development, which also match the objectives and philosophy of Islamic finance in various regulations and different fields. In this regard, a rising number of related objectives and concepts have been exploited to distinguish and formulate the sustainable development status and long-term strategic objectives of enterprises, since these reflected substantial “non-accounting” information are not revealed in financial reports but constitute an important component in business valuation. These ESG indicators have grown in importance since they can be utilized to assess whether or not policies formulated by corporate management are affecting operational efficiency and future strategic direction, and to help develop insights and opinions on intangible assets such as brand value and reputation. In the future, our company will also integrate ESG, SDGs and the philosophy and demands of Islamic finance, which we aim to incorporate into our comprehensive assessment system in the future.

Environmental concerns

Covers topics such as climate risk, natural resource scarcity, pollution and waste, as well as environment-related investment opportunities. Islamic finance protection of life goal aligns with sustainable finance principles, which emphasize environmental and social protection including either refraining from developing or financing operations that could adversely impact the environment and/or the health or the well-being of humankind.

Social concerns

Including labor issues and risks such as product liability, information security, and stakeholder dissent. There are also parallels between the social focus of ESG analysis and integration and the principle of profit- and loss-sharing, both of which ultimately aim to adopt a stakeholder view and increase social cohesion, and ensure that no one is left behind.

Corporate governance concerns

Includes issues related to corporate governance and behavior such as board quality and effectiveness. On the governance side, Islamic banks and instruments are typically subject to an additional layer of governance compared with their conventional counterparts. Islamic banks and products are typically approved by Sharia boards, which ensure the conformity of these products with Sharia at any point in time during their life cycle.

SDGs

NO POVERTY End poverty in all its forms everywhere

ZERO HUNGER End hunger, achieve food security and improved nutrition and promote sustainable agriculture

GOOD HEALTH AND WELL-BEING Ensure healthy lives and promote well-being for all at all ages

QUALITY EDUCATION Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all

GENDER EQUALITY Achieve gender equality and empower all women and girls

CLEAN WATER AND SANTATION Ensure availability and sustainable management of water and sanitation for all

AFFORDABLE AND CLEAN Ensure access to affordable, reliable, sustainable and modern energy for all

DECENT WORK AND ECONOMIC GROWTH Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

INDUSTRY,INNOVATION AND INFRASTRUCTURE Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation

REDUCED INEQUALITIES Reduce inequality within and among countries

SUSTAINABLE CITIES AND COMMUNITIES Make cities and human settlements inclusive, safe, resilient and sustainable

RESPONSIBLE CONSUMPTION AND PRODUCTION Ensure sustainable consumption and production patterns

CLIMATE ACTION Take urgent action to combat climate change and its impacts

LIFE BELOW WATER Conserve and sustainably use the oceans, seas and marine resources for sustainable development

LIFE ON LAND protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss.

PEACE,JUSTICE AND STRONG INSTITUTIONS Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels

PARTNERSHIPS FOR THE GOALS Strengthen the means of implementation and revitalize the global partnership for sustainable development.