Purepofo: A Cutting-Edge Tool for Comprehensive Halal and ESG Screening with Multi-Faceted Stock Performance Assessment

This article examines the application of the stock screening tool “purepofo” (www.purepofo.com), which integrates Halal and Environmental, Social, and Governance (ESG) criteria with a comprehensive performance assessment based on widely used financial metrics. The article evaluates Purepofo’s abili...

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Main Authors: Hazem Hamoudia, Firdaus Fanny Putera Perdana
Format: Article
Language:English
Published: Università degli Studi di Torino 2025-07-01
Series:European Journal of Islamic Finance
Subjects:
Online Access:https://ojs.unito.it/index.php/EJIF/article/view/11208
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author Hazem Hamoudia
Firdaus Fanny Putera Perdana
author_facet Hazem Hamoudia
Firdaus Fanny Putera Perdana
author_sort Hazem Hamoudia
collection DOAJ
description This article examines the application of the stock screening tool “purepofo” (www.purepofo.com), which integrates Halal and Environmental, Social, and Governance (ESG) criteria with a comprehensive performance assessment based on widely used financial metrics. The article evaluates Purepofo’s ability to align Shariah compliance and ESG standards with performance-driven investing, addressing ethical and financial imperatives. The study presents a comparative analysis of the financial performance of stocks screened using a combined screening approach versus non-screened counterparts, while also outlining methodological limitations. Key findings reveal that Halal and ESG-screened stocks outperformed peers in several financial dimensions, including operational efficiency, dividend reliability, and resilience to market volatility. Notably, these stocks demonstrated higher Sharpe Ratios, more substantial gross margins, and consistent revenue growth, challenging the perception of a trade-off between ethical compliance and financial performance. However, limitations, such as the underrepresentation of high-growth stocks and valuation complexities, highlight the need for further methodological refinement. The discussion emphasises the potential of a customised financial metrics model to support investors in achieving competitive returns without compromising ethical integrity. The results suggest that Halal-ESG stocks offer more than symbolic ethical Value; they exhibit measurable financial resilience, governance, and sustainability strength. While alignment with Maqasid al-Shariah principles remains central, the data—rather than ideals alone—positions Islamic finance as a leader in sustainable investing. This article contributes to the growing discourse on Halal-ESG integration by offering actionable insights for Islamic finance portfolio managers, Shariah scholars, and thought leaders. Bridging ethical compliance, sustainability, and financial performance highlights the role of integrated tools in advancing innovation and inclusivity in global finance.
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spelling doaj-art-008fa2a7ab5b4464bafa28707f73a9972025-08-20T04:00:54ZengUniversità degli Studi di TorinoEuropean Journal of Islamic Finance2421-21722025-07-0112210.13135/2421-2172/11208Purepofo: A Cutting-Edge Tool for Comprehensive Halal and ESG Screening with Multi-Faceted Stock Performance AssessmentHazem Hamoudia0Firdaus Fanny Putera Perdana1Hazem Hamoudia Management ConsultingIPMI Institute This article examines the application of the stock screening tool “purepofo” (www.purepofo.com), which integrates Halal and Environmental, Social, and Governance (ESG) criteria with a comprehensive performance assessment based on widely used financial metrics. The article evaluates Purepofo’s ability to align Shariah compliance and ESG standards with performance-driven investing, addressing ethical and financial imperatives. The study presents a comparative analysis of the financial performance of stocks screened using a combined screening approach versus non-screened counterparts, while also outlining methodological limitations. Key findings reveal that Halal and ESG-screened stocks outperformed peers in several financial dimensions, including operational efficiency, dividend reliability, and resilience to market volatility. Notably, these stocks demonstrated higher Sharpe Ratios, more substantial gross margins, and consistent revenue growth, challenging the perception of a trade-off between ethical compliance and financial performance. However, limitations, such as the underrepresentation of high-growth stocks and valuation complexities, highlight the need for further methodological refinement. The discussion emphasises the potential of a customised financial metrics model to support investors in achieving competitive returns without compromising ethical integrity. The results suggest that Halal-ESG stocks offer more than symbolic ethical Value; they exhibit measurable financial resilience, governance, and sustainability strength. While alignment with Maqasid al-Shariah principles remains central, the data—rather than ideals alone—positions Islamic finance as a leader in sustainable investing. This article contributes to the growing discourse on Halal-ESG integration by offering actionable insights for Islamic finance portfolio managers, Shariah scholars, and thought leaders. Bridging ethical compliance, sustainability, and financial performance highlights the role of integrated tools in advancing innovation and inclusivity in global finance. https://ojs.unito.it/index.php/EJIF/article/view/11208Halal investingShariah ComplianceESG ScreeningStock PerformanceIslamic Finance
spellingShingle Hazem Hamoudia
Firdaus Fanny Putera Perdana
Purepofo: A Cutting-Edge Tool for Comprehensive Halal and ESG Screening with Multi-Faceted Stock Performance Assessment
European Journal of Islamic Finance
Halal investing
Shariah Compliance
ESG Screening
Stock Performance
Islamic Finance
title Purepofo: A Cutting-Edge Tool for Comprehensive Halal and ESG Screening with Multi-Faceted Stock Performance Assessment
title_full Purepofo: A Cutting-Edge Tool for Comprehensive Halal and ESG Screening with Multi-Faceted Stock Performance Assessment
title_fullStr Purepofo: A Cutting-Edge Tool for Comprehensive Halal and ESG Screening with Multi-Faceted Stock Performance Assessment
title_full_unstemmed Purepofo: A Cutting-Edge Tool for Comprehensive Halal and ESG Screening with Multi-Faceted Stock Performance Assessment
title_short Purepofo: A Cutting-Edge Tool for Comprehensive Halal and ESG Screening with Multi-Faceted Stock Performance Assessment
title_sort purepofo a cutting edge tool for comprehensive halal and esg screening with multi faceted stock performance assessment
topic Halal investing
Shariah Compliance
ESG Screening
Stock Performance
Islamic Finance
url https://ojs.unito.it/index.php/EJIF/article/view/11208
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