A type of sukuk in which the proceeds are utilized only for the purpose of funding certain activities or transactions relating to the eligible projects (sustainable and responsible investment, SRI). The main driving forces for both sukuk issuers (originators) and sukuk-holders converge on objectives of sustainability and social responsibility, in addition to profitability which relatively ranks lower.

These projects are evaluated and selected as per a clearly defined process that takes into consideration the requirements of sustainability and social and environment responsibility in the underlying investments. The proceeds allocated for the eligible SRI projects are kept by the sukuk issuer in a designated account for ease of tracking and attribution. Otherwise, a proper mechanism for tracking and attribution has to be set up. The objectives or underlying maqasid from issuance of these sukuk include promotion of the use of renewable energy, reduction of greenhouse gas emissions, improving human life quality, preservation and protection of the environment and natural resources (animals, plants, seas and rivers, etc.)

The eligible SRI projects may cater to a number of key areas such as green investing (clean transportation, pollution prevention, energy efficiency, climate change adaptation, green initiatives, and sustainable water management).

For example, improving quality of life may be meant to positively impact the lives of the poor and the needy (generally those living below poverty line), marginalized populations and communities, peoples with disabilities, vulnerable groups, and so on.