Is Lear Corporation (LEA) Halal to invest in?

How much of Lear’s revenue comes from haram?

Lear Corporation earns its revenue from the following segments:

  • Seating:

Includes revenue generated from manufacturing and distributing complete seat systems, seat subsystems and key seat components for vehicles.

  • E-Systems:

Includes revenue generated from manufacturing and distributing complete electrical distribution and connection systems, electronic systems, and software and connected services used within vehicles. 

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

Practical Islamic Finance concludes:

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

Does Lear rely on interest to operate?

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


According to Lear’s 2020 Sustainability Report, Lear achieved a nearly 10% reduction in absolute energy use in 2020 from 2015.

In addition, Lear achieved a nearly 12% reduction in absolute GHG emissions in 2020 from 2015.


According to Lear’s 2020 Sustainability Report, the company supported 80 charities in 2020.

In addition, 1,372 of Lear’s employees in Michigan donated a total of $1 million to local and global organizations through Lear’s Operation GIVE campaign.

20 of Lear’s executives serve on the boards of non-profit organizations.

Lear has an above-average Glassdoor rating of 3.8 out of 5.0 from over 1800 current and previous employees compared to a 3.3 average for all other Glassdoor rated companies.


No notable governance highlights.

Practical Islamic Finance concludes:

Lear has a net positive ESG impact.

Comfort Rating

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

Comfortable to invest in from a Halal perspective.


Lear Corporation Reviews

2020 Sustainability Report 

Lear Q3 2021 10-Q
Lear 2020 10-K

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