Morningstar’s Q2 review shows global ESG inflows accelerated 22% QoQ, supported by EU taxonomy-driven fund launches. For ESG vs Impact Investing watchers, thematic impact funds tied to UN SDGs saw stronger alpha generation than broad ESG ETF peers. However, there is a schism forming among those who claim to adhere to the idea of shareholder primacy–the notion that a company should serve only its investors. And it widened again last month when oil giant ExxonMobil sued two of its shareholders , Arjuna Capital and Follow This, to block them from submitting climate-related resolutions at its shareholder meeting. The brief advised impact funds to design internal systems that “genuinely balance financial and impact considerations,” sharpen their impact measurement tools, and reset compensation practices to better reflect their impact goals. “Our findings suggest that many investors could do more to operationalize their dedication to impact in how they run their funds,” said Brown, who created a research-based primer to help leaders implement effective impact measurement systems. The ESG vs Impact Investing valuation gap is narrowing. Data from MSCI shows ESG large-cap P/E ratios have stabilized at 21.4, while impact sectors — notably microfinance equities — hold at 20.9, providing relative entry point parity for diversified sustainable portfolios.