Asia dominates top 100 cities for environmental risk

Some 414 of 576 global cities, more than 70%, are at high or extreme risk from environmental threats, according to new research from Verisk Maplecroft, with 99 of the top 100 most at-risk cities in Asia. Jakarta is top of the list of riskiest cities for environmental risks in the Verisk ranking, due to a combination of poor air quality, earthquake risk, flooding and subsidence. Delhi is in second place and, overall, India is home to 13 of the world’s 20 highest-risk locations, driven largely by pollution and air-quality measures, with Chennai in third position, Agra sixth and Kanpur tenth. Indian cities account for 19 of the most at-risk locations by air quality, Verisk said. Measuring global cities with a population of more than one million against nine environmental risk indices such as pollution and air quality, water supply natural hazards and vulnerability to climate change, Verisk said other city rankings will follow on security and social issues later this year. With investors and regulators increasingly concerned about ESG issues, Verisk said: “Organisations unable to account for the full spectrum of their environmental threats and impacts will face some difficult conversations.” At the other end of the scale, Europe is home to 14 of the 20 least-risky cities for environmental threat, with Krasnoyarsk in Siberia polling as the least risky at 576th, followed by Oslo, Glasgow, Helsinki and Copenhagen, all within the medium risk range. Naples, Rome and Athens are among just a handful of European cities within the high-risk category for environmental risk. The Middle East and Africa had the highest number of cities in the high risk range after Asia, led by Turkish and Iranian cities, which scored badly against measures of water stress and natural hazards. Lima is the most at-risk city in the Americas, in 21st place overall, and the only non-Asian city in the top 100, followed by Mexico City, Santiago and Los Angeles in the Americas region. Verisk’s indices for natural hazards show Asia is most at risk, led by flood-prone Guangzhou and Dongguan in China, followed by Osaka, Tokyo and Shenzen. Flooding and seismic risk are the biggest threats to Europe’s riskiest cities, led by Milan, Naples and Rome, while air quality is a relatively benign factor for most except Warsaw and Milan. Verisk said poor water quality in Europe has affected the profile for some cities, in particular Paris and Moscow, which are tipping over into high-risk territory for this measure. Africa recorded the highest risk in the climate change index, given its exposure to climate extremes but also weak mitigation capabilities. Lagos and Kinshasa are amongst the cities most at risk from climate change impacts and, outside of Africa, Verisk said Caracas, Karachi, Manila and Jakarta all carry high risks from climate change. “Environmental risk needs to be a central consideration when it comes to making your business, investments or real estate portfolio more resilient,” said Will Nichols, head of environment and climate change for Verisk Maplecroft. “By identifying material risks and stress-testing operations and strategies against different future climate scenarios, you’ll gain a clearer view of the costs and benefits of investment decisions.”

Asia dominates top 100 cities for environmental risk

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