Companies in the oil and gas sector, including large groups such as Shell, BP and Exxon, could lose 95% of their value by 2050 if governments take action to limit global warming to 2 degrees Celsius, according to new analysis.

The report, from the investment consultancy Mercer, is one of the first comprehensive attempts to model sector-by-sector effects of climate change, and potential regulatory action to combat it, on investors’ portfolios.