Identifying Latent Research Themes on ESG Score and Sharia Compliance: Topic Modelling Approach Using Latent Dirichlet Allocation (LDA)

These two flavours of responsible investing-Sharia-compliant investing and ESG investing-share much of the same guiding principles, which include advocacy for environmental stewardship and socio-moral business conduct, but the relationship between these practices of responsible investing has been relatively understudied in academic discourse. This study aims to explore the relationship between ESG and sharia compliance. The study uses “ESG score” or “Sharia compliance”. The raw data is collected from various databases like ProQuest (915), Scopus (1040), and Web of Science (214), a total of 2086 abstract data for the analysis. The results show the most occurring words on wordcloud. Inversely least occurring words on TF-IDF. And also shows a correlation graph for word correlation. For the topic and most important theme modelling through Latent Dirichlet Allocation (LDA). In this study, we can create 7 most important themes/topics around these keywords which are discussed in the result section. This study reveals very important results that will offer considerable insights to scholars, policymakers, and investors in enhancing their understanding of how the two frameworks converge towards further advancement of sustainable and ethical investing methods.