Bank Islam Launches Ihsan Sustainability Investment Account 3.0

Strategic Insights -

Bank Islam Malaysia Bhd has introduced its third version of the Shariah-compliant Ihsan Sustainability Investment Account (ISIA) 3.0, designed to deliver competitive returns while channelling funds toward significant social and environmental impact. As a core part of Bank Islam's sustainability strategy, ISIA 3.0 forms a key component of the bank's value-based intermediation (VBI) agenda. This innovative investment account is structured under Wakalah Bil Istithmar, aligning with Shariah principles and supporting key sustainability agendas such as the United Nations Sustainable Development Goals (UN SDGs), Bank Negara Malaysia's Climate Change and Principle-based Taxonomy (CCPT), and Islamic social finance.

Key Takeaways:

  • ISIA 3.0 is the third version of the Shariah-compliant Ihsan Sustainability Investment Account, designed to deliver competitive returns and channel funds toward significant social and environmental impact.
  • ISIA 3.0 forms a core part of Bank Islam's sustainability strategy, contributing to the bank's value-based intermediation (VBI) agenda.
  • The fund is structured under Wakalah Bil Istithmar, aligning with Shariah principles and supporting key sustainability agendas including the UN SDGs, CCPT, and Islamic social finance via platforms such as Zakat and Sadaqa House Bank Islam.
  • Since its introduction, the ISIA series has attracted strong investor interest, raising RM1.8 billion through ISIA 1.0 and 2.0, reflecting growing demand for purpose-driven financial solutions grounded in Islamic values.
  • ISIA 3.0 is designed to empower investors with visibility into where and how their capital is deployed, ensuring both Shariah compliance and measurable, purposeful outcomes through structured impact reporting.
  • The fund's financing-based structure allows Bank Islam to scale its impact efforts without burdening its capital base, enabling broader participation in ESG-aligned investing with sustainability and Islamic values.
  • Sharifah Sarah Syed Mohamed Tahir, Bank Islam group chief business officer for institutional banking, noted that institutions acting early to embed ESG across their business will be best placed to lead and capture emerging opportunities in the sector.
  • As of December 2024, Bank Islam has achieved 93 per cent of its revised RM28 billion sustainable finance target for the financial year 2025.

Statistics:

  • Bank Islam has raised RM1.8 billion through ISIA 1.0 and 2.0.
  • RM28 billion: Bank Islam's revised sustainable finance target for the financial year 2025.
  • 93%: Bank Islam's achievement of its revised RM28 billion sustainable finance target as of December 2024.

Sources:

  • BERNAMA News Agency (01 Jul 2025)