The Implementation of Environmental, Social, and Governance (ESG) Principles to Enhance Operational Management at BPRS Mitra Syariah Ponorogo

Abstrak

This study explores the implementation of Environmental, Social, and Governance (ESG) principles in enhancing operational management at BPRS Mitra Syariah Ponorogo and identifies the challenges in integrating these principles within an Islamic financial framework. As ESG becomes increasingly significant in the financial sector, aligning it with Sharia values presents both opportunities and obstacles for Islamic banks. This research adopts a descriptive qualitative approach through a field study, utilizing observations and semi-structured interviews with key personnel involved in ESG-related activities. The findings reveal that BPRS Mitra Syariah Ponorogo has begun integrating ESG components, especially in inclusive financing for MSMEs and ensuring Sharia compliance. Furthermore, the institution shows potential to pioneer ESG initiatives such as green financing and environmentally conscious operations. However, broader implementation remains constrained by the absence of ESG standards specific to Islamic banking, limited stakeholder awareness, and difficulties in assessing social and environmental impacts.