The findings signal a major shift toward inclusive decision-making in Canada’s investment landscape, even as climate neutrality goals show signs of retreat
Key findings:
- Women are taking their place at the decision-making table: Gender representation on General Partner (GP) investment committees has surged, with 88% of firms including at least one woman in 2024—up from just 63% in 2021.
- Momentum is building for diversity in senior investment teams: Diversity in senior investment teams is accelerating: 45% of GPs now have senior investment teams made up of at least half women (up from 38%), and 50% have at least half visible minorities (up from 40%). Visible minority representation on investment committees jumped to 76%, up from 55% in 2021. However, for junior team members in GP organizations, it is declining, which could impact the future pipeline of diverse leadership if the trend continues.
- Climate action is falling behind: Only 5% of GPs reported having a carbon-neutral goal in 2024—a decrease compared to previous years.
MONTREAL, Diversity and inclusion are gaining ground across Canada’s Venture Capital (VC) and Private Equity (PE) sector, but increased scrutiny on ESG and greenwashing may be contributing to a more cautious approach to climate neutrality objectives.
These findings come from BDC Capital’s annual snapshot of Diversity, Equity, and Inclusion (DEI) and Environmental, Social, and Governance (ESG), which draws on data from its national portfolio, both at the fund level and across underlying portfolio companies, as a proxy for broader industry trends.
DEI: Steady gains, room to grow
The report spotlights significant progress in gender diversity, especially at the investment committee level, where the presence of women has climbed sharply, with 88% of firms including at least one woman in 2024—up from just 63% in 2021.
Senior leadership is also becoming more diverse, with visible minorities making notable gains. However, diversity remains more pronounced in junior ranks, and retaining women employees is still a challenge: at least half of all departures were women in 54% of GPs, while only 34% reported gender parity in their overall workforce.
The data shows that 69% of GPs now have a DEI statement or champion—a sign that the industry is embracing change, but the journey is ongoing.
ESG: Social and governance progress, environmental action under pressure
GPs are increasingly factoring social and governance risks into their due diligence and investment decisions, and more are evaluating ESG risks in their portfolio supply chains. Yet, the number of GPs with a carbon-neutral objective has dropped compared to last year, and some firms have retreated from previously announced climate commitments.
Quote from Geneviève Bouthillier, Executive Vice President, BDC Capital
“At BDC Capital, our focus on inclusive teams and sustainable practices isn’t philosophical—it’s a strategy to unlock Canada’s full economic potential. Diverse leadership and strong ESG practices drive better decisions, reduce risk, and open new growth opportunities. The momentum in Canadian VC shows that inclusion and sustainability are no longer aspirational—they’re becoming core to how business gets done.”
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