How much of Emerson Electric’s revenue comes from haram?

Emerson earns its revenue from the following revenue sources:

  • Automation Solutions:

Emerson offers measurement and analytical instrumentation, industrial valves and equipment, and process control software and systems for hybrid and discrete manufacturers to maximize production, protect personnel and the environment, and optimize their energy efficiency and operating costs through its broad offering of products and integrated solutions.

  • Commercial & Residential Solutions:

Includes products and solutions that promote energy efficiency, enhance household and commercial comfort, and protect food quality and sustainability through heating, air conditioning, and refrigeration technology.

In addition, Emerson offers a range of tools and appliance solutions.

The contributions from each of Emerson’s revenue segments in their 2020 annual report were as follows:

Practical Islamic Finance concludes:

None of Emerson’s revenue comes from anything inherently haram.

Does Emerson Electric rely on interest to operate?

Year-to-Date
for period ended
3/31/2021
Fiscal year
ended
9/30/2020
Fiscal year
ended
9/30/2019
Interest Income $6,000$19,000$27,000
Total Revenue$8,592,000$16,785,000$18,372,000
Interest Expense $84,000$175,000$201,000
Total Expenses$7,298,000$14,469,000$15,513,000
Interest Income / Revenue0.07%0.11%0.15%
Interest Expense / Total Expense1.15%1.21%1.30%
*Numbers in thousands, U.S. dollars

Practical Islamic Finance concludes:

Riba is used but not relied upon in Emerson’s operations.

What is Emerson Electric’s Environmental, Social, and Governance (ESG) impact?

Environment

In 2020, Emerson decreased its CO2 emissions by 10%, global electricity usage by 11%, and global water consumption by 18.5% from 2018.

Social

In 2020, Emerson and the Emerson Charitable Trust contributed $24.5 million to more than 1,300 charities, nonprofit organizations, and educational institutions across the United States.

In addition, Emerson has a relatively high Glassdoor rating of 3.8 out of 5.0 from over 4,000 current and previous employees compared to a 3.3 average for all other Glassdoor rated companies.

Governance

No notable governance highlights.

Practical Islamic Finance concludes:

Emerson has a net positive ESG impact.

Comfort Rating

From Emerson Electric’s business, financial, and ESG reviews, Practical Islamic Finance rates Emerson Electric stock as:

Comfortable to invest in from a Halal perspective.

Sources

Emerson 2020 Annual Report

Emerson Q2 2021 Report 

Emerson’s Commitment to Environmental Sustainability 

Emerson’s Commitment to Social Responsibility

Emerson Reviews