Understanding Green Halal
Green halal is still a relatively new concept in Malaysia, and this also includes other Muslim-majority countries. Green Halal means to bring together Islamic ethics and green principles. While Halal ensures products and services meet Islamic law standards, Green Halal goes the extra mile to incorporate ethical procurement, eco-friendly production, and waste reduction into the mix. This is also in line with the Islamic faith of sustaining the earth (khalifah) and adhering to mindful consumption.
Recently, Rizal IL-Ehzan, Alliance Islamic Bank’s CEO, discussed with Bernama how integrating sustainability with Halal practices can help businesses stay competitive. It will also meet the rising demand for Halal and ESG-compliant products. He also noted that many businesses operate within Halal parameters but are unaware of their sustainability impact. This showed the growing importance of green halal.
Why is Green Halal Important for Businesses?
1) Growing Consumer Demand
Consumers, especially Millennials and Gen Z, are becoming more conscious of sustainability. They seek products that are not only Halal but also sustainable. Businesses that adopt Green Halal practices can acquire a broader, more loyal customer base.
2) Competitive Advantage in the Marketplace
As sustainability becomes a point of differentiation, businesses embracing Green Halal programs have a competitive advantage over others. It indicates corporate responsibility, innovation, and long-term viability.
3) Regulatory and Certification Advantages
Regulators and governments around the world are making stricter sustainability standards mandatory. Businesses embracing Green Halal early are able to achieve certifications, grants, and incentives, which entice investors and partners more.
4) Enhancing Brand Reputation
Adopting Green Halal increases the brand image of a business. It will show how brands actually care about being ethical, adopting halal certifications, and aligning their business practices with sustainability. Consumers who take seriously supporting these same things are likely to support and have confidence in brands who do the same.
5) Cost Savings and Operational Efficiency
Business green practices, such as minimization of waste through the effective usage of energy, save costs in the long run. Green Halal businesses can utilize resources more effectively and yet provide Halal integrity.
How Do Businesses Adopt Green Halal?
To adopt green halal, businesses can follow a few key steps. First, they should source ingredients and materials ethically, which follows Islamic principles. It must be free from forbidden substances like alcohol or pork. Not only that, the sourcing process should be fair and workers are treated fairly and ethically. Businesses must also be respecting environmental guidelines in line with Islamic values.
Second, they should focus on eco-friendly production by using renewable energy and efficient methods. Also, businesses should minimize waste by recycling and reducing food waste. Sustainable packaging made from recyclable or biodegradable materials is also important. Finally, it is important to educate both employees and customers about green halal. This is to ensure awareness is spread and encourage adoption.
Conclusion
Green Halal is not a trend; it is the future of sustainable business that incorporates Islamic values. With this concept, businesses can positively impact the environment, meet growing consumer expectations, and enhance their brand value. It is time for businesses to embrace Green Halal and lead the way to sustainable business.
