Is Procter & Gamble Stock Halal?

Is Procter & Gamble Stock Halal?

How much of Procter & Gamble’s revenue comes from haram?

Procter & Gamble earns its revenue from the following revenue sources:

  • Beauty:

Includes Hair and Personal Care products such as Shampoo, Conditioner, antiperspirants, cleansing washes, and skin care products. 

  • Grooming:

Includes products such as razor blades, razors, pre- and post-shave products, and other grooming appliances. 

  • Health Care:

Includes Oral Care products such as toothbrushes, toothpaste, and other oral care solutions.

In addition, Procter & Gamble offers personal health care products for Gastrointestinal and Respiratory problems, vitamin and mineral supplements, and pain relief medications. 

  • Fabric & Home Care:

Fabric products include fabric enhancers, laundry additives, and laundry detergents.

Home Care products include air care solutions, dish soaps and detergents, and home cleaning supplies.

  • Baby, Feminine, & Family Care:

Includes baby wipes, diapers, menstrual care products, paper towels, tissues, and toilet paper.

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

Practical Islamic Finance concludes:

None of Procter & Gamble’s revenue comes from anything inherently haram.

Does Procter & Gamble rely on interest to operate?

for period ended
Fiscal year
Fiscal year
Interest Income $11,000$155,000$220,000
Total Revenue$18,109,000$70,950,000$67,684,000
Interest Expense $106,000$465,000$509,000
Total Expenses$14,324,000$55,244,000$53,852,000
Interest Income / Revenue0.06%0.22%0.33%
Interest Expense / Total Expense0.74%0.84%0.95%
*Numbers in thousands, U.S. dollars

Practical Islamic Finance concludes:

Riba is used but not relied upon in Procter & Gamble’s operations. 

What is Procter & Gamble’s Environmental, Social, and Governance (ESG) impact?


In 2020, Procter & Gamble reduced direct and indirect greenhouse emissions associated with purchasing electricity, heat, cooling, or steam by 35% from 2019.

In addition, Procter & Gamble states 70% of its global electricity usage comes from renewable energy sources.


In 2016, Amnesty International, a non-governmental organization dedicated to furthering human rights, published a report claiming Wilmar International, one of Procter & Gamble’s suppliers of palm oil, uses forced labor. 

Palm oil is an ingredient used in many shampoos, detergents, and cleaning products.

Amnesty International’s report included interviews with workers who stated they are exposed to toxic chemicals in their work environment with inadequate safety equipment and are threatened to not be paid if they do not meet the unrealistic goals of their employer. 

Procter & Gamble confirmed to Amnesty International it sources some palm oil derivatives from Wilmar, although stated it was a small amount.

Procter & Gamble refused to publicize which of its brands use palm oil sourced by Wilmar, likely as an attempt to avoid boycotts of its widely used products.

Fast forward to 2019, Procter & Gamble states in its 2019 citizenship report:

“Our major PKO (palm kernel oil) and PKOD (palm kernel oil derivatives) suppliers are FGV, Wilmar, ICOF, KLK, GAR, and AAA.”

Procter & Gamble’s intransigence on a serious issue that wouldn’t cost it much, assuming what it said about only sourcing a small amount of palm oil from Wilmar , is very concerning.


No notable governance highlights.

Practical Islamic Finance concludes:

Procter & Gamble has a net negative ESG impact.

Comfort Rating

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

Uncomfortable to invest in from a Halal perspective.

Justification for our rating:

While Procter & Gamble’s products are not inherently haram, Practical Islamic Finance is uncomfortable with the company’s lackluster response to allegations of abuse in its supply chain.

This lack of response is either the result of the cost of switching suppliers being too high, which implies the supplier is very important to Proctor & Gamble and not the small contributor it claims it to be, or the company just doesn’t care enough.

We’re not sure which is worse but we’re sure that these possibilities make us uncomfortable investing in Proctor & Gamble for the time being.


FY1920 10-K Report 

Form 10-Q 


Palm Oil: Global brands profiting from child and forced labour

Case studies: Palm oil and human rights abuses

Palm Oil and human rights: What you need to know 

Procter & Gamble Wiki   

Rating for Amnesty International USA 

Environmental Sustainability 

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