Executives in the energy and natural resource industries are confident about their ability to develop thriving new businesses. Bain’s research found that, across sectors, companies are increasing their capital allocation to new growth areas, up from 16% in 2020 to 23% in 2022. Three out of four executives expect those new businesses to ramp up quickly, accounting for more than 10% of their company’s profits or valuation by 2030. Some regional differences are emerging: North American companies are investing less than their counterparts in Europe and Asia—and the American executives’ expectations for those new business are significantly lower, too.
For more on how energy and natural resource executives think about the transition, read “10 Takes on the Energy and Resource Transition.”