Executive Summary:
This report examines how leading private equity (PE) managers disclose their relationship to the Sustainable Development Goals (SDGs) in ESG reporting and compares Canada’s largest PE firm, Brookfield Asset Management, with the broader peer group.
The research identifies nine modes through which PE firms report on the SDGs—ranging from mapping portfolio companies’ sectors to specific Goals, to launching SDG-focused funds. Across the sample, SDG 13 (Climate Action) and SDG 8 (Decent Work and Economic Growth) are the most frequently reported. Brookfield Asset Management, with over $1 trillion in assets under management, provides extensive disclosure on SDG 13 and reports a high frequency of environmentally related concepts.
For Canadian financial executives, risk managers, and board members, the findings suggest that—with five years remaining to deliver the SDGs—organizations should determine which of the nine integration modes best fit their mandates. SDG integration should be intentional and additive, avoiding post-investment reverse engineering. A lack of planning, structure, processes, and targets can signal legitimacy behaviour that responsible investors should avoid.
Stepping into SDG integration with intention and confidence can deliver a double bottom line—strengthening financial performance and sustainability impact—and provide a model for financial institutions globally. This is particularly relevant as Canada deepens international partnerships and as Montreal hosts the International Sustainability Standards Board (ISSB), a global reference point for ESG direction.