Our Methodology A holistic approach to screening stocks

To determine the Halal Investors' comfort level investing in a particular asset, the following screens are used to create a Halal Report Card:

  • 1. Business Screen

    Does a material part of the company’s revenue come from haram?

  • 2. Financial Screen

    Does the company rely on interest (either paying interest or receiving it) to remain solvent?

  • 3. Environmental, Social, Governance (ESG) Screen

    Environmental criteria considers how a company performs as a steward of the Earth & the environment. Social criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. Governance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights.

In practice, we do this by reviewing a company's performance and producing a scorecard using the following criteria:

Score Business Screen Financial Screen ESG Screen HI Comfort Level
None of the business's revenue comes from haram. Riba is not used while running the company. The company has a substantial positive impact on the environment, society and governance. If lowest score across all screens is 5, HI Comfort Rating is
Entirely Comfortable
A non-material portion of the business’s revenue comes from haram. Riba is used but is not relied on to run the company. The company has a net positive impact on the environment, society and governance. If lowest score across all screens is 4, HI Comfort Rating is
Comfortable
It is questionable whether a material part of the business’s revenue comes from haram. It is questionable whether Riba is relied on to run the company. It is questionable whether the company’s net impact is positive or negative on at least one of the following: environment, society or governance. If lowest score across all screens is 3, HI Comfort Rating is
Questionable
A material part of the business’s revenue comes from haram. Riba is somewhat relied on to run the company. The company has a net negative impact on at least one of the following: environment, society or governance. If lowest score across all screens is 2, HI Comfort Rating is
Uncomfortable
The business’s revenue primarily comes from haram. Riba is relied on to run the company. The company has a substantial negative impact on at least one of the following: environment, society or governance. If lowest score across all screens is 1, HI Comfort Rating is
Entirely Uncomfortable

Our reports are not meant to be understood as a religious ruling (fatwa). Rather, they represent our best effort in trying to identify whether the company in question is engaged in anything forbidden (haram) and to what extent. Based on our analysis, we assign our own comfort level to investing in the company in question. We encourage readers to let us know if we missed anything in the comments or voice their agreement/disagreement by leaving a thumbs up/down.

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