The role of Islamic crowdfunding in supporting environmental sustainability goals: insights from Indonesia’s Sharia-based securities crowdfunding platforms

Purpose The presence of the Islamic finance industry offers new opportunities for aligning ethical and responsible investment with worldwide sustainability objectives. In Indonesia, Sharia-based securities crowdfunding (SBSC) is an emerging equity-based crowdfunding platform that has the potential to become a funding alternative for environmentally friendly initiatives in the business sector. Thus, this study aims to explore the extent to which the platform supports the achievement of environmental sustainability goals. Design/methodology/approach This study uses an exploratory qualitative design through semi-structured interviews with key practitioners from three SBSC platforms. To ensure data triangulation, the interview transcripts are complemented by a systematic review of institutional publications collected from their official websites. The consolidated data were analyzed using NVivo-based thematic analysis to identify emerging patterns and strategic implications. Findings This study reveals a growing awareness among SBSC platforms of sectors aligned with environmental sustainability goals. Nonetheless, platform support and initiatives toward environmental sustainability are still limited and varied among the SBSC platforms. This is primarily due to the lack of formalized policies, underdeveloped institutional mechanisms and the absence of regulatory drivers. Research limitations/implications This study is limited to three SBSC platforms focusing on their activities concerning environmental sustainability within the 2021–2024 period. The findings imply the need for platform transition and institutional reform toward more environmentally conscious operations, alongside a formal sustainability-related policy framework at regulatory level. Practical implications The findings highlight the need for structured sustainability screening, environmental disclosure, monitoring and reporting mechanisms grounded in Islamic principles. Strengthening these mechanisms may improve governance and accountability and support the institutionalization of environmental sustainability within the Islamic crowdfunding ecosystem. Social implications This study highlights the broader societal relevance of SBSC platforms in promoting environmental sustainability through Islamic finance. Integrating sustainability considerations may expand access to sustainable finance, raise environmental awareness among market participants, and strengthen alignment between financial activities, Islamic ethical values and environmental sustainability objectives. Originality/value This study provides one of the first empirical investigations into how SBSC platforms operationalize environmental sustainability within their platform-level practices. In doing so, it extends the Islamic crowdfunding literature by providing empirical evidence on the institutional processes through which environmental sustainability is translated into practice.