By Paula Cruickshank, Senior Vice President, Fund Investments, BDC Capital
Where we started: planting the seeds of change
Over the past four years, Canada’s venture capital (VC) and private equity (PE) industry has navigated significant challenges, but its role in the economy was—and remains—critical. Since we first started tracking Canadian information, the conversation has evolved: diversity, equity, and inclusion (DEI) and environmental, social, and governance (ESG) have moved from aspirational goals to strategic imperatives for long-term resilience. At BDC Capital, our first steps were deliberate: launching a national DEI reporting template for Canadian GPs, based on global frameworks, to track metrics on gender, race, ethnicity, and identification. The goal? A common language and benchmark to measure progress and spark meaningful change.
Where we are now: progress and insights
Fast forward to today: Despite challenging market conditions and heightened scrutiny of DEI and ESG, the 2025 BDC Capital DEI and ESG Portfolio Metrics Report reveals clear momentum in these areas—reflecting global trends toward responsible investing.
Diversity is rising: 45% of GPs report women make up at least half of senior investment teams (up from 38%), and 50% report the same for visible minorities (up from 40%).
Board representation is improving: 64% of portfolio companies now have at least one woman on their board (up from 57% last year), and 54% have at least one visible minority (up from 47%).
DEI policies are gaining traction: 69% of GPs have a formal DEI statement or champion in place (down 1% from last year, but up 17% from 2021).
ESG integration is deepening: 93% of GPs embed ESG considerations into due diligence and discuss them at the investment committee (up from 85% in 2023 and 75% in 2022).
Climate action is gaining traction: 29% of GPs measure and report GHG emissions associated with portfolio companies (up from 21% last year).
Carbon neutrality commitments declined: only 5% of GPs report such targets, down from 18% in 2022—a shift likely driven by stricter Canadian greenwashing regulations.
GP ownership trends are shifting: The share of GPs with more than 75% women ownership rose to 11%, and entirely women-owned GPs nearly doubled to 9% (up from 5% in 2023), while entirely male-owned GPs declined from 55% to 43%.
While some foundational practices have stalled, the overall trajectory is clear—DEI and ESG are becoming integral to investment strategies, even as the industry adapts to ongoing challenges.
Looking ahead: from metrics to momentum
Four years of data confirm these insights are more than benchmarks—they’re tools for shaping strategy. As we approach five years of reporting, we’ll deepen our focus on supporting GPs in implementation, providing practical guidance to embed DEI and ESG at both fund and portfolio levels. This includes consulting the broader ecosystem to ensure solutions are actionable and impactful.
We will continue our regular outreach to GPs and portfolio companies to gather feedback on our reporting templates and processes, and collaborate with industry partners to refine these tools as best practices evolve. This commitment ensures our approach remains relevant and useful across the ecosystem.
Together, we can accelerate progress—building a venture capital ecosystem that delivers returns, resilience, and impact, even in uncertain times.
Access the full report and view detailed year-over-year comparisons.
