Almost nine out of 10 European business leaders view climate change as the number one threat when it comes to long term risk assessment, according to a survey of 150 European companies.

Respondents to the poll were asked to consider threats to the continuity and long-term success of their business, and 87 per cent placed climate change ahead of terrorism, flu pandemic, flooding, the credit crunch, government red-tape, outsourcing and offshoring.

Following last summer’s floods, three quarters of businesses cited adverse weather as a genuine threat to business continuity - 70 per cent of these respondents said they have plans in place to deal with any flood-related disruption.

Meanwhile, 60 per cent of businesses expect a terrorist attack in the UK within the next 18 months, with around three quarters of these companies having planned for such an event.

The survey, sponsored by insurance broker and risk adviser Marsh, revealed that only a third of businesses (33 per cent) believe they will be affected by sub-prime lending and the credit crunch.

“Climate change and energy risk consistently rank among the biggest challenges facing global businesses in 2008,” said Martin Caddick, leader of Marsh’s Business Continuity Management team.

“While the majority of firms surveyed have accurately identified the major risks that could affect their businesses, fewer seem to be successful in tackling them head on. This lack of preparedness continues to be a major issue for European firms in today’s turbulent times,” Caddick added.