Is Roche Stock Halal?
Table of Contents
How much of Roche’s revenue comes from haram?
Roche develops pharmaceutical products and diagnostics for a wide range of diseases.
The company operates through the following segments:
- Pharmaceuticals:
Includes revenue generated from selling pharmaceutical products for treating cancer, metabolic disorders, infectious diseases, inflammatory diseases, and central nervous system disorders.
- Diagnostics:
Includes revenue generated from offering in vitro diagnostics solutions, covering molecular diagnostics, clinical chemistry and immunoassays, tissue diagnostics, point of care testing, patient self-testing, next-generation sequencing, and laboratory automation.
In addition, both segments include revenues from licensing products and technologies to third parties.
The contributions from each of Roche’s revenue segments in their 2021 half-year report were as follows:
Practical Islamic Finance concludes:
None of Roche’s revenue comes from anything inherently haram.
Does Roche rely on interest to operate?
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What is Roche’s Environmental, Social, and Governance (ESG) Impact?
Environment
According to Roche 2020 annual report, Roche has reduced its energy consumption, general waste, and water consumption by 19%, 26%, and 28.5% since 2015, respectively.
Social
The Roche Employee Action and Charity Trust (Re&Act), established in 2006, has helped build child-friendly schools and day centers in Malawi and Ethiopia by training 560 teachers yearly.
In 2015, Roche developed the EXPERIO school laboratory in Kaiseraugst, Switzerland, reaching 2,500 students a year. The laboratory allows schoolchildren to experience a range of scientific activities, including programming robots, soldering electronic circuits, and understanding fundamental chemical and biological processes.
In 2017, Roche contributed to the International Committee of the Red Cross (ICRC) projects in Mali, building and upgrading water supply systems for over 630,000 people.
Roche has a high Glassdoor rating of 4.3 out of 5 from over 5,000 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:
Roche has a net positive ESG impact.
Comfort Rating
From Roche’s business, financial, and ESG reviews, Practical Islamic Finance rates Roche stock as:
Comfortable to invest in from a halal perspective.
Sources
Roche Efforts in Humanitarian and Social Development
Roche Support for Science and Education