Climate change is no longer merely an environmental issue. It is increasingly becoming an economic risk for businesses, local authorities and infrastructure operators. Recent analyses by KfW (KfW Research No. 542, 8 April 2026) show that numerous companies in Germany are already experiencing the negative effects of extreme weather events – and the trend is rising.
Rising temperatures, more frequent heatwaves, heavy rainfall events, flooding and prolonged periods of drought are not only affecting buildings and infrastructure. Supply chains, energy supplies, labour productivity and the attractiveness of locations are also coming under increasing pressure. Economically strong regions and densely populated urban areas are particularly affected.
Local authorities are increasingly faced with the question of how towns and cities can remain liveable in the future. Heat stress in city centres, a lack of air circulation, sealed surfaces and the growing risk of heavy rainfall call for new planning approaches.
At the same time, industrial and commercial enterprises face the challenge of making their sites more resilient to climate change. Production and logistics sites must continue to operate reliably even under changing climatic conditions. Those who identify climate risks at an early stage can avoid significant additional costs and plan their investments effectively.
The effects of climate change often vary significantly from place to place. While one neighbourhood may be suffering from extreme heat, a few streets away a favourable cold-air system may provide relief. This is precisely where microclimatic and urban climate analyses come into play.
Modern simulation techniques can be used to:
- identify hotspots,
- analyse cold air currents,
- assess the impact of planned construction projects,
- identify risks associated with heavy rainfall and overheating at an early stage,
- and develop targeted adaptation measures.
This provides a sound basis for decision-making for local authorities, project developers, industrial companies and commercial enterprises.
Our Meteorology and Climate Division supports cities, local authorities and industrial and commercial clients in analysing and assessing climatic conditions.
Our services include, amongst others:
- Urban climate studies
- Microclimate modelling
- Climate adaptation strategies
- Heat and stress analyses
- Cold air and air exchange studies
- Climate-ecological assessments for development and infrastructure projects
- Expert reports for approval and planning procedures
By using high-resolution simulation models, we lay the foundations for sustainable and climate-resilient site selection decisions.
Climate change will continue to reshape the demands placed on cities, local authorities and businesses in the coming years. Those who address local climatic conditions today are laying the foundations for sustainable and resilient places to live and work.
Would you like to know what climate risks exist at your location, or how planned projects might affect the local climate? Our experts in the Meteorology and Climate Division can support you with in-depth analyses, simulation-based reports and practical recommendations for action.