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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.

Good 5
  • Documented annual ESG and Shariah screening review with quarterly monitoring triggers.
    Documentation Essential
  • Define RAG taxonomy: Red (prohibited/severe), Amber (watchlist), Green (compliant). Specify data sources (min 2), tie-break rules, and conflict resolution.
    Process Essential
  • Maintain exceptions/breach register; define roles (Board/IC/SSB); annual training.
    Governance Essential
  • Regular reporting on screening outcomes and stewardship (voting/engagement).
    Documentation Essential
  • Independent Shariah advisory oversight with conflict policies
    Leadership High
Better 5
  • Zero red assets at period end OR Permitted Temporary Exception (register, notify, plan, disclose) for illiquid assets.
    Performance Essential
  • Documented purification (tathīr) methodology approved by SSB. Scope: interest, fund distributions, equity proportion, penalties. Disburse to beneficiaries, not ops.
    Process Essential
  • Screening covers 100% of portfolio. Achieve >90–95% look‑through for pooled funds with manager attestations for residual.
    Scope Essential
  • Integration of detailed ESG criteria (MSCI/RepRisk taxonomies)
    Sustainability High
  • Benchmarking against ethical/Islamic investment funds
    Excellence Medium
Best 2
  • Compliance with FCA SDR and anti-greenwashing rules
    Compliance High
  • External assurance (e.g., ISAE 3000) over screening controls
    Transparency High

Related Criteria

TS-AWM-01 Waqf deeds registered & compliant TS-AWM-02 Annual waqf ROI & impact report TS-AWM-03 Ethical investment policy TS-AWM-04 Asset maintenance & insurance TS-AWM-05 Allocation of Waqf Surplus Income to Welfare
Version
2.9.7 2025-11-05

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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