Is Rivian (RIVN) Halal to invest in?
Table of Contents
How much of Rivian’s revenue comes from haram?
Rivian currently does not generate revenue.
Rivian is currently developing electric pickup trucks and SUVs with a focus on autonomy.
The company has a contract with Amazon to produce and deliver 100,000 electric delivery vans through 2024.
Practical Islamic Finance concludes:
None of Rivian’s revenue comes from anything inherently haram.
Does Rivian rely on interest to operate?
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What is Rivian’s Environmental, Social, and Governance (ESG) impact?
Environment
Transportation is the largest contributor to U.S. greenhouse gas emissions, accounting for 29% of total emissions in 2019. According to MIT research, on average in the United States, an electric vehicle would emit about 200 grams of CO2 per mile, while combustion engine vehicles emit 275 grams of CO2 per mile. With the gap in carbon footprint continuing to increase over time as electric vehicle makers become more efficient. From the above, PIF believes Rivian’s business has the potential to have a fundamentally positive impact on the environment.
Social
Rivian has a high Glassdoor rating of 4.3 out of 5 from over 300 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:
Rivian has a net positive ESG impact.
Comfort Rating
From Rivian’s business, financials, and ESG reviews, Practical Islamic Finance rates Rivian stock as:
Comfortable to invest in from a Halal perspective.
Sources
Sources of Greenhouse Gas Emissions | US EPA
Greenhouse Gas Emissions from a Typical Passenger Vehicle | US EPA
Rivian Has Built 56 R1Ts As Of October 22 Or Two Vehicles A Day
Rivian expands into fleet business beyond its ‘exclusive’ Amazon deal
Lifetime emissions of EVs are lower than gasoline cars, experts say