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Purpose

This paper aims to construct green disclosure regulations to prevent greenwashing in Islamic finance services.

Design/methodology/approach

This research is legal research with the statute approach and comparative approach methods. The legal materials used are regulations regarding green finance that are enforced in several countries such as Indonesia, Malaysia and the UK.

Findings

Sustainable finance, from an Islamic perspective, is a financial approach that is not solely oriented towards financial profit but also considers environmental sustainability, social justice and compliance with Sharia principles. However, greenwashing has become a serious issue and problem along with the increasing trend of investment in Islamic finance. The Green Disclosure Regulations (GDR) serve as a transparency framework that establishes requirements for Islamic finance players to disclose sustainability information and assist investors in making informed decisions about investing in projects aligned with sustainability goals.

Research limitations/implications

This research identifies sustainable regulations in the Islamic financial services implemented by several countries in the world.

Practical implications

The GDR proposed in this study can be useful as a guideline for all countries to develop sustainable regulations in Islamic finance services.

Social implications

The recommendations in this study are important to realize green finance as a sustainable finance in Islamic financial services.

Originality/value

This research analyzes regulatory issues and formulates green disclosure regulations in Islamic financial services. This research is important for preventing greenwashing in Islamic financial services so that green finance as a sustainable financial instrument can be realized.

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