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The rising cost of heatwaves: why resilience matters

Olivia O’Brien, head of climate resilience, shares the growing cost of the climate crisis on people, place and planet

Published

08.07.2026

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As the climate crisis drives more frequent and intense heatwaves, the impacts are being felt not only in rising temperatures, but in people's health, livelihoods and the resilience of the places where they live and work.

Olivia O’Brien, head of climate resilience, shares the impact she is seeing and the urgent need for greater collaboration:

“This heatwave is creating clear ‘winners and losers’ across our economy, but the overall picture is one of rising cost rather than benefit.

“On the ‘winners’ side, we typically see short-term uplift in activity at pubs with outdoor space, retailers selling fans or portable cooling, and green spaces and riverside locations also tend to attract higher footfall.

“However, these gains are often short-lived. The ‘losers’ are more structurally affected. Commercial buildings, especially older stock that equates to over half of office space in central London, as just one example, are struggling with overheating, reducing productivity and increasing operational costs. In construction, extreme heat can slow or pause work on site, leading to programme delays and financial implications.

“Heat-related delays and reduced service on the Underground and rail networks can suppress footfall in central retail and business districts, directly affecting trade. Streets without shade or greenery become uncomfortable to navigate, reducing dwell time and limiting passing trade, while tree-lined streets can be up to 8°C cooler.

“There is also a clear socioeconomic impact. Workers in customer-facing or manual roles often bear the brunt of extreme heat, while businesses face lost productivity and reduced revenue. These impacts are already materialising and will only intensify. 

“What this shows is that climate risk is no longer a future concern. The wider financial impact points to the urgent need to design, refurbish and operate our cities' buildings and public spaces for a hotter climate, while keeping carbon emissions to a minimum, given the construction industry’s role in contributing to the very conditions it must now design against.”

Olivia recently shared her views on what can be done to drive greater collaboration and climate resilience. Read her insights here.