TS-AWM-07
Trust & Stewardship
Asset & Waqf Management
CORE
Excellence
v2.9.7
Endowment ESG & Sharīʿah screening review annually
Assesses whether the organization conducts an annual, look‑through review of all endowment holdings against defined Sharīʿah and ESG screening criteria, with quarterly monitoring for breaches. The goal is zero high‑risk assets held at the reporting date, or a managed remediation plan for illiquid exceptions. High‑risk means holdings that (a) breach Sharīʿah sector/ratio screens (e.g., AAOIFI SS 21) or (b) meet the charity’s excluded ESG sectors or severe controversy thresholds.
Assessment Questions
- Does the organization have a documented policy for annual screening with defined RAG thresholds and quarterly monitoring triggers?
- What evidence demonstrates ≥90–95% look‑through for each pooled fund (holdings reports, side letters) and how is residual exposure treated?
- Show the breach/exception register for the last 12–24 months—does it include dates, root causes, remediation plans, and SSB/IC approvals?
- How is the purification (tathīr) amount calculated (including interest/dividends) and is there evidence of disbursement to eligible beneficiaries?
- What stewardship actions (engagement/voting) were taken to prevent or remediate Amber/Red risks with managers?
Evidence Requirements
- Endowment Investment Policy with RAG taxonomy and 'Permitted Temporary Exception' clause.
- Look‑through packs for pooled funds (latest holdings + methodology + coverage %).
- Signed manager attestations/side letters on quarterly transparency and Sharīʿah/ESG compliance.
- Breach/exception register export showing remediation status.
- Purification calculation workbook + SSB approval + payment confirmations.
- Investment management agreements (IMAs) showing screening/reporting clauses.
Scoring Guidelines
| Level | Rating | Description |
|---|---|---|
| 5 | 5/5 | Rigorous review, zero high-risk assets (or approved exceptions), external assurance, stewardship active. |
| 4 | 4/5 | Annual review, >90% look-through, breaches remediated/logged, purification executed. |
| 3 | 3/5 | Annual review conducted, policy exists, minor data gaps. |
| 2 | 2/5 | Review irregular, incomplete look-through, or undefined purification. |
| 1 | 1/5 | No screening review or significant high-risk assets. |
Discussion (1)
Administrator
2026-03-07 11:07:37.273322
📋 **Version updated: 1.0.0 → 2.9.7** **Changes:** Updated islamic_references from mizan-297.json
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