Public Expectations of Islamic Banks’ Role in Addressing Climate Change

Abstract

This study aims to understand how the public interprets and shapes expectations regarding Islamic banks' role in addressing climate change. It adopts a qualitative descriptive-exploratory approach based on semi-structured interviews with members of the public in Makassar. Of the 75 interviews conducted, response summaries from 57 interviews met the criteria for analysis using reflexive thematic analysis. Coding was developed inductively, while Stakeholder Theory and maqasid al-shariah served as conceptual lenses during interpretation. The findings show that the public expects Islamic banks to play a role that remains close to everyday needs, particularly by providing affordable green financing, supporting adaptation among MSMEs and households, screening environmentally harmful activities, and offering practical education. Islamic identity provides a moral foundation for these expectations, but it is not regarded as evidence of environmental responsibility in itself. Public trust depends more strongly on transparent use of funds, verifiable impacts, and consistency between environmental claims and financing portfolios. Support for green products and policies is also conditional, as costs, returns, access, and service convenience remain important considerations. Differences in environmental and service experiences, relationships with Islamic banks, and economic capacity further shape variations in expectations. This study proposes the concept of conditional climate legitimacy to explain how public acceptance becomes stronger when environmental responsibility is expressed through relevant intermediation, equitable access, credible evidence of impact, and consistently reliable service. The findings broaden the discussion of Islamic green banking by positioning the public as an active participant in shaping the legitimacy of banks' actions.