Tokyo, May 27, 2026 - NEC Corporation (NEC; TSE: 6701), in partnership with New York University (NYU), has evaluated the broader economic impacts of a flood protection project implemented on the Island of Manhattan in New York City. This was achieved by constructing value analysis models for five themes: transportation infrastructure, housing, mental health, and others. The findings showed that losses of up to approximately 800 million US dollars could potentially be avoided.

This evaluation was conducted as part of the "Capstone Program" at the NYU Tandon School of Engineering, which helps to solve real-world challenges through the intersection of technology and business. NEC joined the program in September 2025 under the theme "Digital Adaptation Finance for Urban Resilience."

Based on this evaluation, NEC and NYU have signed a Memorandum of Understanding (MOU) to promote further studies in urban disaster prevention, resilience, and advanced technology fields, thereby deepening their initiatives aimed at resolving urban and societal vulnerabilities.

In recent years, the effects of climate change have increased demand for stronger corporate activities and urban resilience to address these challenges. However, initiatives aimed at enhancing resilience, particularly projects whose benefits are difficult to quantify, often face issues such as difficulties in calculating ROI (Return on Investment), making investment decisions, and securing financing for project development.

To address this, NEC is utilizing its expertise in value chain modeling and digital technologies to quantitatively demonstrate the economic impact in areas where outcomes are traditionally difficult to measure, such as disaster preparedness, preventive maintenance, sustainability, and BCP (Business Continuity Planning). This effort aims to support decision-making and facilitate financing.

Background of the Evaluation

Following the damage caused by Hurricane Sandy in 2012, which resulted in cascading economic losses across New York City, awareness of the risks posed by coastal and inland flooding to the urban economy and local communities has grown significantly. Along the Rockaway Peninsula, which was the focus of this evaluation, projects such as dune construction, shoreline reinforcement, and seawall development have been underway since 2020 under the Greater Rockaway Resilience Plan. This evaluation was conducted to demonstrate a decision-making framework and diverse funding approaches for projects that generate wide ranging benefits, but whose impacts are often difficult to quantify, by assessing the economic impacts arising from this series of initiatives.

In this evaluation, a value chain diagram was created to visualize the chain of diverse benefits generated by projects implemented under the Greater Rockaway Resilience Plan. Analysis models were constructed for five of the most impactful themes. Economic impacts were calculated based on data from past hurricanes and their damages, as well as future damage projections derived from flood risk scenarios.

Specifically, for themes such as protecting tourism resources by preventing beach erosion, reducing the risk of damage to transportation infrastructure and housing, and mitigating mental health impacts on residents, spatial and economic data (e.g., land use, taxation, demographics, maps) were integrated with disaster-related information (e.g., flood hazards, flood damage scenarios) and analyzed using Geographic Information Systems. By quantifying and visualizing where floods would occur, who would be affected, and the cascading impacts that would follow, it became possible to convert avoided damages, new value created, and potential losses into monetary terms.

(Left) Analysis Overview: Using Geographic Information Systems and other tools to analyze information related to each theme
(Right) Analysis examples by theme: Showing that 88% of public housing units are at risk of inundation without flood countermeasures

In addition, the validity of the estimated results was verified through comparisons with past cases and existing research. Interviews were also conducted with local stakeholders and residents regarding changes before and after the flood protection project. Furthermore, input was sought from financial institutions from the perspective of project evaluation in impact finance and investment practices. Through these practical and multifaceted assessments, the effects of the project have been demonstrated.

Roles of NEC and NYU

NEC: Project design, identification of social challenges from a business perspective, and implementation support from both practical and societal perspectives.
NYU Tandon School of Engineering, Center for Urban Science and Progress: Project design, provision of frameworks (Capstone Program), field expertise, networks, and technical knowledge, student guidance, risk analysis, cascading damage modeling of physical hazards and urban infrastructure, decision-making support, and compilation of results.

Future Outlook

Based on the MOU, both parties will explore opportunities for social implementation of the findings, including engagement with financial institutions on the potential for new financing methods enabled by the quantification of economic impacts using technologies such as satellite image analysis, AI, and remote sensing.

Comments from both parties are as follows:

"’Where, to whom, and how much damage cascades’ is the foundational question of CERA Lab. In this study, we spatially integrated flood hazard data and socioeconomic data spanning transportation, housing, and mental health in New York City's Rockaway Peninsula, and quantified the multifaceted benefits generated by disaster prevention investments. These benefits have historically been invisible, resulting in their omission from investment decisions. This research provides a framework to fill that gap. Visualizing these invisible benefits has the power to drive policy and funding decisions, not just academic research. Through my work on the New York City Panel on Climate Change (NPCC) I engage daily with the process by which climate change impact assessments are reflected in urban policy. This research was also designed from that perspective, and I find it highly significant that, through collaboration with NEC, we were able to demonstrate how an academic framework can expand the possibilities of real-world project evaluation and funding."

Yuki Miura Assistant Professor, Department of Mechanical and Aerospace Engineering, Center for Urban Science and Progress (CUSP), NYU Tandon School of Engineering
Chair of Climate, Energy, and Risk Analytics Lab (CERA Lab)
Member of New York City Panel on Climate Change (NPCC)

"The economic damages associated with climate change are, in fact, most pronounced in developed countries. While strengthening resilience is urgent, public and private sectors efforts often remain fragmented, and for individual projects, ROI is often unclear, making decision-making and fundraising difficult. This research presents a basic framework for evaluating the economic impact of projects with ambiguous effects and suggests the potential for expanding future funding methods. We are pleased to have been able to share our findings in collaboration with NYU, through a project focused on the global city of New York."

Ryutaro Adachi, Executive Professional, GX Business Development Division, NEC Corporation

***

About NEC
The NEC Group leverages technology to create social value and promote a more sustainable world where everyone has the chance to reach their full potential. NEC Corporation was established in 1899. Today, the NEC Group’s approximately 110,000 employees utilize world-leading AI, security, and communications technologies to solve the most pressing needs of customers and society.

For more information, please visit https://www.nec.com, and follow us on LinkedIn and YouTube.