Texas Pacific Land Corp. (NYSE:TPL) Is Islamic Finance Compliant, Human Rights Safe, and an A+ ESG Ethical Company to Invest In

Introduction

Texas Pacific Land Corp. (NYSE:TPL) matters to ethical investors because it sits at an unusual intersection: a large landowner in the United States with significant water and land-management operations, strong ESG disclosures, and a business model that earns royalties from oil and gas activity without directly drilling. For conscious investors asking “Can I earn returns while staying true to halal, human-rights-safe, and ESG-compliant principles?” Texas Pacific Land Corp. offers a compelling case study.

In short, this article examines three ethical pillars for TPL: human-rights and conflict exposure, ESG compliance (environmental, social, and governance), and Islamic finance (shariah/halal) compatibility. You’ll get a clear investability verdict, a plain-language company overview, and a detailed ethical analysis—so you can decide whether TPL fits your portfolio goals and values.

Final Investability Verdict

• Overall recommendation: Investable — A+
• Key strengths: Low ESG risk (14.1 total), extremely low environmental risk (0.3), clear governance and disclosure, Islamic finance compatibility, and a unique royalty-based model that avoids direct oil production.
• Key concerns: Still ~65% dependent on fossil fuel revenue (2025); earnings tied to drilling and commodity prices in the Permian Basin.
• Ideal investor profile: Income-focused, ethically minded investors seeking dividend/royalty exposure with strong governance and low direct environmental footprint; Muslim investors seeking halal equity exposure in a U.S.-listed company.

“Investing in ethical companies like Texas Pacific Land Corp. channels capital toward transparent governance, sustainable water and land stewardship, and measurable ESG progress — while still delivering income to shareholders.”

“As a result, the investor not only pursues returns, but also helps reward and scale responsible business practices that can influence industry behavior.”

Company Overview

Who they are and what they do — in plain language. Texas Pacific Land Corp. is a Dallas, United States–headquartered company (NYSE: TPL) with a market capitalization of approximately $21.46B. Founded from a nineteenth-century railway land trust, the company owns large surface land interests and nonparticipating royalty rights, concentrated in West Texas and the Permian Basin.

TPL’s business is built around land and resource management and water services. They do not drill or extract oil and gas themselves; instead, they collect royalties from operators, sell surface materials, grant easements, lease land for commercial uses and renewables, and operate a Water Services segment that provides sourcing, produced-water treatment, and disposal services.

Human Rights Safety: Genocide & War Crime Involvement Check

Texas Pacific Land Corp. rates positive on human-rights safety based on the available data. There is no public record linking the company or its key officials to war crimes, genocide, or human-rights violations. The company’s total ESG Risk Score is 14.1 (Negligible), with a social risk score of 1.9 (low), which supports the conclusion that human-rights exposure is limited.

Supply chain analysis

• TPL’s direct operations center on land ownership and water services; they do not extract hydrocarbons themselves. That reduces direct operational human-rights risk relative to producers.
• However, their revenue largely depends on third-party oil and gas operators working on their land. The dataset does not list specific operator names or a supplier code of conduct, so detailed supplier audits are not available here.
• Given that the company does not control operator practices, a secondary risk exists: operator misconduct could create reputational or indirect human-rights concerns for TPL, though no such incidents are reported in the provided data.

Customer base screening

• Available information shows a customer base of oil and gas operators, renewable lessees, and water-services clients — all within the United States, primarily the Permian Basin.
• No evidence in the data indicates sales to oppressive regimes, state actors involved in human-rights abuses, or parties sanctioned for war crimes.

Product/service use verification

• TPL’s products — royalties, easements, land leases, and water services — are used in energy development, infrastructure and commercial activities. These uses are legitimate commercial activities with no documented links to human-rights violations.
• The Water Services segment emphasizes produced-water treatment and disposal — services that, when well managed, reduce environmental harm and potential community impacts.

Business integrity score: Investable (A+) — the company is reported as not affiliated with non-ESG activities or human-rights violations.

“By choosing not to invest in companies linked to human-rights abuses and instead supporting companies with transparent practices and low social risk, ethical investors redirect capital in ways that reduce the economic incentives for abusive behavior.”

This section is critical: while TPL’s business ties to oil operators present an indirect human-rights and environmental exposure, the available evidence points to no direct involvement in war crimes, genocide, or abuses. That makes TPL a comparatively safe option for war-free investing and genocide-free companies screening.

ESG Compliance: Environmental, Social & Governance Standards

TPL’s ESG profile is strong on the metrics provided. The company is labeled ESG Compliant with a Total ESG Risk Score of 14.1 (Negligible), an Environmental Risk Score of 0.3 (extremely low), and a Social Risk Score of 1.9 (low) as of September 2025. For conscious investors focused on ESG-compliant opportunities, those numbers are notable — especially for a company tied to the energy sector.

Why the ESG scores are strong

• Unique business model: TPL is not an oil and gas producer; it earns royalties and manages surface interests. That lowers direct emissions, spills, and on-site environmental risk compared with operators.
• Transparent reporting: The company released an inaugural ESG disclosure in August 2021, published 2024 disclosures, maintains an ESG website, and follows GRI and TCFD frameworks.
• Governance oversight: An ESG Leadership Committee with CEO and CFO involvement and board-level Nominating & Governance Committee oversight strengthens accountability.

Environmental initiatives

• Partnership with Milestone Carbon (May 2022) on carbon capture initiatives.
• Exploring renewable energy opportunities on TPL land.
• Water conservation and sustainable development through the Water Services segment, focused on the Permian Basin’s needs.

Governance and social programs

• Completed reorganization from trust to C-Corp in 2021—improving corporate governance structure and transparency.
• Board-level oversight of ESG programs and routine public disclosures.
• Social risk is low per scores, and no public evidence links the company to community rights abuses.

However, a material caveat remains: as of 2025 about 65% of TPL’s revenue is tied to fossil fuel activity. While the company doesn’t extract resources itself, higher drilling activity benefits TPL financially. That means TPL’s long-term transition away from hydrocarbons depends on operators, commodity markets, and successful diversification into renewables and water infrastructure.

For ethical investors asking whether TPL is ESG compliant: yes, per the provided metrics it is. But keep asking: how rapidly can TPL shift its revenue mix away from fossil reliance? That question determines how durable those ESG credentials will be as energy markets evolve.

Islamic Finance Compliance: Shariah & Halal Investment Status

For Muslim investors seeking halal stocks, Texas Pacific Land Corp. is reported as Islamic Finance Compliant — Shariah / Halal. The company’s business and revenue structure meets the provided halal screening criteria.

Why TPL qualifies as shariah-compliant

• Primary revenue sources: Royalties, land and material sales, easements, commercial leases, and water services. These are generally permissible business activities under Islamic finance principles.
• Non-participation in prohibited activities: There is no evidence of involvement in interest-based lending, gambling, alcohol, pork, weapons, or other haram sectors in the provided data.
• Financial screening: The dataset explicitly states the company is halal / shariah compliant. This implies debt and interest, and non-permissible revenue thresholds meet common shariah filters—though the exact financial ratios used are not provided here.

Revenue sources and prohibited activities screening

• TPL’s revenues are linked to the fossil-fuel sector through royalties, but that does not automatically disqualify a company under most shariah screens if the primary operations are permissible and non-halal income is negligible.
• No data here suggests derivation of income from interest-bearing activities or other haram business lines.
• Investors seeking shariah certification should confirm details with their chosen shariah board or screening provider, as the dataset does not include the underlying financial ratio calculations.

Why this matters: halal stocks that are also ESG compliant are rare on major U.S. exchanges like the NYSE. For Muslim and ethical investors who want exposure to U.S. land and water infrastructure while avoiding interest and prohibited revenues, Texas Pacific Land Corp. presents a viable option — provided you complete your own shariah verification steps.

Conclusion & Call-to-Action

Texas Pacific Land Corp. (NYSE: TPL) is an unusual and attractive option for ethical investors: ESG compliant with a negligible total risk score of 14.1, declared halal/shariah compatibility, and no documented human-rights violations. The central trade-off is its continuing revenue dependence on fossil-fuel activity (about 65% of revenue), which ties returns to drilling and commodity cycles.

Do your due diligence: review TPL’s 2024 ESG disclosures, check current revenue mix, and, for Muslim investors, confirm shariah compliance with your advisor.

Share This Article to Spread Awareness

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For conscious investors asking “But what does this mean for my portfolio?” — Texas Pacific Land Corp. offers income exposure with strong governance and low direct environmental footprint, while still carrying industry-linked fossil-fuel risk. If you prioritize ESG-compliant, halal, and human-rights-safe investments on the NYSE, TPL is worth a closer look.