Norway’s sovereign wealth fund, valued at $1.4 trillion and considered the largest in the world, has strengthened its requirements regarding climate risk for the companies it invests in. Previously focused on target setting, the fund now demands that companies shift their focus to transition planning. The fund expects companies to establish key performance indicators (KPIs) to measure the progress of their climate transition plans on an annual basis. Additionally, companies must disclose their advancements in achieving their net zero strategies and demonstrate how executive pay aligns with interim targets and transition plans. The fund also released a policy on the use of voluntary carbon credits, stating that while companies can utilize verified credits to signal high climate ambitions, priority should be given to reducing their own emissions.