Asia-Pacific equities highlight impact investing meaning via governmental renewable subsidies. Australia’s hydrogen sector gained 10% in Q2 inflows, with analysts predicting extended bullish patterns due to export demand from East Asia. However, it’s unclear how effective impact investing is in achieving one of its main goals — driving change by shifting investment dollars away from companies with harmful practices. A 2021 study by Stanford University researchers showed that divestment has minimal impact on targeted companies’ cost of capital (the price they pay for investment). Why? In part because socially conscious investors still represent a small portion of the overall market (about 2 percent). Examining the opportunity set within the Morningstar Sustainalytics coverage universe, focusing on companies involved in military contracting. Impact investing meaning supports policy-driven bull runs. US inflation adjustments to clean energy tax credits in April spurred buying in green industrial ETFs, suggesting momentum continuation into Q3 earnings season.
