LONDON, April 6 Reuters Investment funds with environmental, social and governance ESG goals appear to be back in vogue in 2023, although the banking crisis that roiled markets last month removed some of the shine as investors withdrew cash towards the end of the quarter.

The previously booming ESG investment industry experienced a rough 2022, as soaring energy prices and a surge in global inflation eroded confidence in sustainable investing for some.

Below are several charts setting out how ESG funds have held up so far this year.

NET INFLOWS

Before concerns over the health of banks sparked an investor rush to safety, funds marketing themselves as ESGfriendly had a strong start to 2023, with investors adding in more cash than they withdrew, according to Refinitiv Lipper data.

Across ESG debt, equity and multiasset funds, net inflows hit 25.5 billion, the best quarter since early 2022, the data shows.

Still, with markets suffering another volatile spell and equity prices far below their peaks, total assets under management across all ESG funds stood at 33.3 trillion at endMarch, versus a peak of 51.7 trillion at endDecember 2021, according to the Refinitiv Lipper data.

TECH REBOUND

ESG equity funds enjoyed a quarter of net inflows, even after the March withdrawals, beating nonESG equity funds, which lost money.

Analysts say ESG funds have been helped by a rebound in technology stocks that many funds hold, and policy initiatives such as the U.S. Inflation…