This report aims to assess the Zambian financial sector’s exposure to nature-related risks, focusing on key areas such as banking, insurance, pensions, and capital markets. It also explores how financial activities in these sectors affect nature. Zambia's financial portfolios exhibit varying degrees of direct and indirect dependence on nature-based services. Notably, commercial lending portfolios in the banking sector, capital allocations in capital markets, and insurance underwriting portfolios show significant reliance on ecosystem services such as regulation, maintenance, and provisioning.
The report recommends that Zambia’s financial sector and relevant stakeholders strengthen regulatory frameworks by incorporating nature-related risk assessments and adopting appropriate tools and models, including Integrated Assessment Models (IAMs).
