Abstract
Growing dissatisfaction with symbolic ESG compliance has exposed a governance gap in sustainable finance: ethical commitments are expanding faster than mechanisms capable of converting them into measurable environmental and social outcomes. This study examines how ESG governance can function as an institutional bridge between sustainable finance and Islamic finance, with relevance to Malaysia, Indonesia, Saudi Arabia and the UAE. Following PRISMA 2020, 29 records identified through Web of Science, Scopus and Emerald Insight were screened, yielding 15 peer-reviewed studies published between 2024 and 2026 for qualitative thematic analysis. Five interconnected themes emerged: normative convergence between ESG and Islamic ethical finance; governance and institutional accountability; Islamic social finance and inclusive sustainability; disclosure, transparency and legitimacy; and digital transformation and impact measurement. The findings show that ethical compatibility alone does not generate credible sustainability outcomes. Strong internal governance, including sustainability committees, Shariah supervisory boards, ESG oversight and integrated reporting, emerges as the critical mechanism separating substantive sustainability from symbolic compliance. Islamic social finance remains notably under-integrated into formal ESG architectures, while existing disclosures are frequently governance-heavy but metric-light. Digital technologies can strengthen traceability and impact measurement, but only when embedded within robust governance systems. This study develops an integrated ESG–Islamic governance framework that translates Maqasid al-Shariah principles into measurable accountability, impact verification and scalable green-development mechanisms. It reframes ESG from a reporting regime into governance infrastructure for ethical, inclusive and resilient finance, offering actionable implications for regulators, financial institutions and sustainability standard-setters.