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Report:
Massive Challenges, Opportunities in Adapting Cities to Climate Change

Study reveals climate-related concerns of residents of 10 major cities, and provides case studies and actionable strategies for increasing urban climate resilience.

August 2024 was the hottest month on record, capping Earth’s hottest summer since global records began in 1880. Heat stress is now the leading cause of weather-related deaths around the world, according to the World Health Organization; and with the typical “concrete jungle” characterized by a lack of green space and a predominance of concrete structures and streets that absorb heat, urban communities are disproportionately affected.

A growing number of organizations are working to address this by increasing urban tree cover, facilitating community access to green space, and adding solar-reflective coatings to buildings and paved areas to help mitigate the heat island effect — but these efforts remain piecemeal, and urban communities are nervous.

A new report from The Economist Group’s Economist Impact, supported by Zurich Insurance Group, highlights urban residents’ concerns about their cities’ readiness to handle the impacts of climate change — as well as potential paths forward. Resilience from the Ground Up: Assessing City-Level Approaches to Climate Risk and Adaptation is based on comprehensive research including a literature review, interviews with 15 climate experts, and a general population survey involving 5,000 residents from 10 major cities around the world: Amsterdam, Cairo, Cape Town, Dubai, Jakarta, Madrid, Mumbai, New York City, São Paulo and Tokyo.

The study delves into how urban residents perceive climate change, the necessary adaptations for their cities and their sense of personal accountability toward climate issues. The insights aim to provide actionable strategies for building resilient urban environments capable of withstanding the increasingly intense effects of climate change.

Key findings

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Unsurprisingly, the study reveals that cities are not prepared for climate risks; and this lack of readiness threatens residents’ safety, health and livelihoods. As Janice Barnes — founder of Climate Adaptation Partners — points out, climate resilience is about more than surviving the next flood, drought or heatwave; it is about ensuring that our communities, cities and economies can thrive in the face of accelerating climate risks: “Every investment must be considered with climate in mind,” she says.

The overall lack of confidence in the ability of urban systems to withstand the growing impacts of climate change reflects gaps in urban planning and infrastructure readiness. City dwellers rightly fear that the systems they rely on — public transport, water supplies, energy grids — cannot handle the accelerating impacts of climate change.

Sunandan Tiwari, director of global implementation at ICLEI – Local Governments for Sustainability, asserts that the time to shift from reactive disaster responses to proactive climate-resilience planning — as seen in communities such as Florida’s Babcock Ranch and Ramboll’s new Neighbourhood Futures framework — is running out: “Cities must develop systems that can absorb climate shocks beyond current capacities,” he says.

Perceptions of cities’ climate preparedness vary. Among the 10 cities surveyed, São Paulo, Tokyo and New York City are seen as the least prepared for climate-related risks — with only 3 percent of respondents considering São Paulo and Tokyo and 6 percent of NYC respondents considering their cities “very prepared.” In contrast, Cairo is perceived as the most equipped to handle climate risks — with over a third of respondents (37 percent) rating it as “very prepared.” This relative confidence in Cairo’s readiness may be attributed to its long-standing efforts to address key climate challenges such as water scarcity. The city has made substantial progress in securing its water future by ensuring access to drinking water and sanitation for all residents. Another factor may be Cairo’s prolonged experience facing these challenges, which may have lessened residents’ concerns about their potential impacts.

The report also highlights case studies examining measures that cities including London, Madrid, Rio de Janeiro, Sydney and Cary, North Carolina are taking to bolster themselves to better withstand the increasingly intense and frequent extreme-weather events taking place around the world.

"These findings reveal significant opportunities for communities to implement steps to mitigate the growing impacts of climate change," said Arooran Sivasubramaniam, Head of North America Zurich Resilience Solutions — which helps businesses protect their people, property and operations from increasingly severe natural hazards. "At ZRS, we are committed to helping organizations understand their natural hazard vulnerabilities, assess potential impacts and develop effective resilience plans."

Public–private collaboration critical for urban climate resilience

Firstly, climate resilience is not just a job for environmental departments — it spans sectors including transportation, housing, health and finance, which often operate independently. But city governments cannot build resilience on their own, and public-private collaboration is often lacking — 57 percent of survey respondents cited this as a major barrier to effective climate adaptation in their cities. The report stresses the need for innovation, commitment and collective action among governments, businesses and individuals.

The report points out the opportunity and impetus for businesses to step up to adapt to extreme weather, and to support individuals in making more meaningful changes. As the primary source of urban economic activity and employment, businesses have a major role to play. Companies have the resources and technical expertise to help develop affordable solutions tailored to local needs, helping to bridge the gap between national policy and local implementation.

By forging public–private partnerships and promoting transparent, inclusive governance, we can prepare our cities to thrive in the face of climate risks.

To read the full report, click here.

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