Is International Paper Company Stock Halal?
Table of Contents
How much of International Paper Company’s revenue comes from haram?
International Paper Company earns its revenue from the following revenue sources:
- Industrial Packaging:
Includes revenue generated from manufacturing industrial packaging.
- Global Cellulose Fibers:
Includes sales of Cellulose fibers used for absorbent hygiene products like baby diapers, feminine care, and tissues.
- Printing Papers:
Includes revenue generated from sales of printing and writing paper
- Other Revenue:
Includes Corporate & Intersegment revenue generated from transferring goods from different segments of the company to the other.
The contributions from each of International Paper Company’s revenue segments in their 2020 annual report were as follows:
Practical Islamic Finance concludes:
None of International Paper Company’s revenue comes from anything inherently haram.
Does International Paper Company rely on interest to operate?
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What is International Paper Company’s Environmental, Social, and Governance (ESG) impact?
Environment
The process of manufacturing paper is typically harmful to the environment due to the negative consequences of collecting raw materials, using harsh chemicals to dye paper, and the water-intensive nature of the process.
In 2019, International Paper Company reached a settlement with the Department of Justice and the US Environmental Protection Agency for an infraction concerning contaminated soil at its Riegelwood NC production plant.
This infraction has since been settled.
In 2010, International Paper Company set out to reduce its global impact by creating its “vision 2020” program.
Since then it has achieved 9 of the 12 goals it set out to accomplish.
A few notable achievements include:
- Reducing greenhouse gas emissions by 21.4%.
- Increasing recovery of old corrugated containers by 66%.
- Donating over 165 million dollars to charitable organizations since 2010.
Additionally, the company committed to planting over 2 million seedlings every year in forests in Russia.
International Paper Company seems like it’s on the right path now with regards to minimizing the environmental impact of its operations.
Social
International Paper Company has an above-average Glassdoor rating of 3.7 out of 5.0 from over 1800 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:
International Paper Company has a net positive ESG impact.
Comfort Rating
From International Paper Company’s business, financial, and ESG reviews, Practical Islamic Finance rates International Paper Company stock as:
Comfortable to invest in from a Halal perspective.
Sources
Settlement Reached Over Pollution at International Paper Plant