Islamic Reporting Initiative: Difference between revisions

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{{Infobox organization

| founded =4 April 2015

| type = [[Nonprofit organization|Nonprofit organization]]

| membership = 100+ members in 2021

The '''Islamic Reporting Initiative''' (IRI) is an independent [[nonprofit organization|nonprofit organization]] leading the creation of the IRI Standard: a reporting standard for [[Environmental, social and corporate governance]] (ESG) based on [[Islam|Islamic]] [[Principle|principles]] and [[Value (ethics and social sciences)|values]]. Its objective is to enable organizations to inclusively assess, report, verify and certify their ESG and [[Philanthropy|philanthropic]] programs in support of the [[Sustainable Development Goals|United Nations Sustainable Development Goals]].

According to the Sustainability Reporting Handbook for Employers’ Organisations<ref>{{Cite web|url=https://www.ioe-emp.org/fileadmin/ioe_documents/publications/Policy%20Areas/csr/EN/_2016-03-10__CSR_for_All_Handbook_for_Employers__Organisations.PDF|title = Sustainability Reporting Handbook for Employers’ Organisations}}</ref>, the IRI Standard will provide comprehensive metrics and methods for effectively measuring and reporting on [[Corporate social responsibility]] (CSR), with a particular focus on short- and long-term investments in extensive and relevant social and environmental aspects, including:

* [[Empowerment]] of the local workforce and [[entrepreneurship]]

* Environmental [[sustainability]]

Founded on4 April 2015, the Islamic Reporting Initiative seeks to make ESG reporting standard practice in organizations across the [[Muslim world|Islamic world]] and [[Organisation of Islamic Cooperation|OIC]] countries in particular. The IRI is headquartered in [[Amsterdam]], [[The Netherlands]], and (as of 2021) has members in more than 50 countries.<ref>{{Cite web|url=https://islamicreporting.org/sign-up/members/list-of-members-per-country/|title = List of IRI members per country}}</ref>

The Islamic Reporting Initiative is an accredited organization ([[Observer status]]) to the governing body of the [[United Nations Environment Programme]] (UNEP), the United Nations Environment Assembly of UNEP.<ref>{{Cite web|url=https://www.unep.org/civil-society-engagement/accreditation/list-accredited-organizations|title = Accredited organizations UNEP}}</ref>

Internal [[market research]] conducted by EMG<ref>{{Cite web|url=https://www.emg-csr.com/|title = EMG}}</ref> in 2014 identified low rates of sustainability and CSR reporting despite a prevalence of sustainability and CSR practice in organizations where Islamic principles and values are an important element of [[corporate culture]]. The firm concluded that existing sustainability [[Sustainability standards and certification|reporting standards]], such as the [[Global Reporting Initiative|Global Reporting Initiative (GRI)]] and [[International Organization for Standardization|ISO Standards]], among others, were not always as practical or relevant in a local and cultural context.<ref>{{Cite web|url=https://www.emg-csr.com/iri/|title = Origins Islamic Reporting Initiative}}</ref>

The Islamic Reporting Initiative was set up with the aim of creating a [[mainstream]] reporting standard for CSR based on Islamic principles.<ref>{{Cite news|url=https://link.springer.com/chapter/10.1007/978-3-319-32754-9_3#Fn36|title = From the book "Islamic Marketing" by Čedomir Nestorović}}</ref>

EMG provided the initial [[funding]]ofEUR 230,000 (no[[related party transaction|related party transactions]]) as part of the firm's own CSR program. Office space was provided through an [[in-kind]] contribution by EMG valued at EUR 25,000 for the period 2015-2016. EMG Founder Daan Elffers performed all IRI-related duties [[pro bono]].<ref>{{Cite web|url=https://www.emg-csr.com/iri/|title = Initial funding Islamic Reporting Initiative}}</ref>

EMG's [[advisory board]] [[chairperson]] is [[Prince Pieter-Christiaan of Orange-Nassau, van Vollenhoven]].<ref>{{Cite web|url=http://www.diplomatmagazine.nl/2015/09/05/islamic-reporting-initiative-to-transform-csr/|title = Islamic Reporting Initiative to transform CSR|date = 5 September 2015}}</ref> Members of the advisory board include Gerrit Heyns, [[Michael Braungart]], and [[Ida Auken]], the former Danish [[Environment minister|Minister of the Environment]].<ref>{{Cite web|url=http://www.diplomatmagazine.nl/2015/04/30/hh-prince-pieter-christiaan-van-oranje-nassau-chairman-of-emg-advisory-board/|title = HH Prince Pieter-Christiaan van Oranje-Nassau Chairman of EMG Advisory Board|date = 30 April 2015}}</ref>

The Islamic Reporting Initiative sees the values of [[peace]], [[compassion]], [[Toleration|tolerance]], [[justice]], [[environmental resource management|environmental management]] and human [[dignity]] as the foundations on which to implement enterprise sustainability and social responsibility on a universal scale.<ref>{{cite web|url=https://www.ojs.unito.it/index.php/EJIF/article/view/3065/pdf|title = Corporate Social Responsibility in Islamic Culture. Comparison between Western CSR and Islamic CSR: focus on Islamic Reporting Initiative and Islamic Financial Institution.}}</ref> Islamic values and principles are shared by more than a quarter of the world’s population with custodianship for vast reservesofnatural resources. See: [[Muslim population growth]]

The application of IRI standards during social responsibility practices is guided by the values of responsibility and [[accountability|accountable]] for the free will Ikhtiyar on personal action, and the [[social justice]] towards the [[society]] as guided by [[Allah]] through the values of [[Zakat]] ([[charity]]) and [[Sadaqah]] or [[philanthropy]] (Buhr & Gray, 2012; IRI Foundation, 2019). Other Islamic values that inform IRI standards include unity through [[moral]] [[respect]] and [[Social equality|equality]] on others and the society, and the assuming [[Khalifa|Khalifah]] ([[vicegerent]]) role by representing Allah on earth through [[stewardship]] over [[nature]] and other resources in the environment (Elasrag, 2018; IRI Foundation, 2019).<ref>{{cite web|url=https://doi.org/10.4236/ojbm.2021.96149|title = Emerging Trends in Sustainability Reporting (SR): Comparative Literature Review in Developed, Developing and GCC Countries}}</ref>

The Islamic Reporting Initiative delves to promote the use of [[triple bottom line]] reporting as an instrument for [[business development]] and growth, in a context that is [[regulation|regulated]] with Islamic principles.<ref>{{Cite news|url=https://pdfs.semanticscholar.org/8751/7584290f8ce5ce4a1267da0e34ee3c83697b.pdf|title = Is Islamic banking and finance doing enough? Shaping the sustainable and socially responsible investment community}}</ref> While the Islamic Reporting Initiative aims to support ''all'' types of organizations, not just [[Islamic banking and finance]] organizations, the IRI Standard will be compatible with [[Sharia]]-compliant finance.<ref>{{Cite web|url=http://www.edie.net/library/Islamic-Reporting-Initiative--A-new-framework-to-transform-CSR-Reporting/6654|title=Islamic Reporting Initiative: Aligning local culture with CSR}}</ref>

* In 2017, the Islamic Reporting Initiative was recognized by the Cambridge IF Analytica [[Global Islamic Finance Report]] (GIFR) as one of the leading initiatives in Islamic Finance.<ref>http://gifr.net/publications/gifr2017/contributors.pdf</ref>

The [[Foundation (nonprofit)]] for the Islamic Reporting Initiative (Stichting IRI Reporting Standard) was founded on [[December 15]], [[2015]].<ref>{{Cite web|url=http://www.kvk.nl/orderstraat/product-kiezen/?kvknummer=64758168&origq=Stichting+IRI+Reporting+Standard|title = Bedrijfsinformatie bestellen}}</ref> The [[Trustee]]s/[[board members]] of the foundation for the IRI are its founder Daan Elffers; [[Entrepreneurship|entrepreneur]], [[thought leader]] and philanthropist [[Mohamed Amersi]]; entrepreneur Amal Daraghmeh-Masri; [[investor]] Gerrit Heyns; and [[scholar]] Abdel-Aziz Sharabati.<ref>{{Cite web|url=http://middleeast-business.com/foundation-for-the-islamic-reporting-initiative-expands-board-of-directors/|title = Foundation for the Islamic Reporting Initiative expands Board of Directors|date = 23 March 2016}}</ref>

The IRI [[Advisory Council]]{{dn|date=January 2022}} includes [[Hakima El Haite|Hakima El Haïté]], Delegate [[Environment minister|Minister in charge of the Environment]] of [[Morocco]] and Host of the [[United Nations Climate Change Conference]] (COP22) in [[Marrakesh]], and Taher Shakhshir, former Minister of Environment, [[The Hashemite Kingdom of Jordan]]<ref>http://www.jordantimes.com/news/local/environment-minister-selected-advisory-member-int%E2%80%99l-initiative%E2%80%99</ref> ([[Chairperson]]).

The IRI [[Collaboration|collaborates]] with a [[global network]]of[[government|governmental]], [[corporations|corporate]] and [[nonprofit organizations|not-for-profit organizations]] worldwide, referred to as members. As of 2021, the IRI has members in more than 50 countries. On [[November 7]], [[2016]], the IRI held its first [[round table (discussion)]] as an official side event of the [[United Nations Climate Change Conference]] (COP22) <ref>http://www.men.gov.ma/Ar/cop22/Documents/Youth_CapacityBuilding.pdf</ref>

The Islamic Reporting Initiative (Stichting IRI Reporting Standard) is a signatory of the [[United Nations Global Compact]]<ref>{{Cite news|url=https://www.unglobalcompact.org/what-is-gc/participants/89221-IRI-Reporting-Standard-Stichting|title = UN Global Compact registration}}</ref> and is a registered [[charitable organization|public benefit organisation]] as defined by the [[statute]] in the [[jurisdiction]] of the [[Netherlands]] ('ANBI' status).<ref>https://www.belastingdienst.nl/rekenhulpen/anbi_zoeken/|title = ANBI status registration</ref>