The top five oil and gas supermajors together have lost about $200 billion in market capitalisation since 2015.

The next five years will bring an intense period of change for industries in the energy and natural resources sector oil and gas, utilities, chemicals, mining and agriculture as many reinvent themselves to tackle climate change and navigate the energy and resource transitions. Some investors are betting against them, shifting money from notable incumbents to new companies with less historical baggage. Bain’s first-ever Global Energy and Natural Resources Report argues it would be a mistake to count these incumbents out.

“Shareholders and activists have made it clear that they want energy and natural resources companies to act now. Standing still in the sustainability movement is no longer an option,” said Joe Scalise, head of Bain & Company’s global Energy & Natural Resources practice. “If we are going to be successful in the energy transition, we need the big incumbents to lead the way.”

This new research points to the experience, capabilities and scale of incumbent energy and resources companies as necessary levers for the energy transition. But to lead the way, these companies must invest in innovation, redefine their impact to maintain the social license required to operate in the world’s most vulnerable places and tell a credible investor story to secure the capital necessary for new investments.