Norway’s wealth fund said companies should move from “target setting to transition planning,” as the $1.4 trillion fund aims for a net zero emissions portfolio by 2050.

Company boards should integrate climate risks into strategies and develop transition plans to deliver on emissions reduction targets, Norges Bank Investment Management said Friday. They should also assess how global warming will affect their operations, value chains and demand for their products.

“With the effects of climate change becoming more evident, we really saw the need to sharpen our expectations,” Chief Governance and Compliance Officer Carine Smith Ihenacho said Friday.

Read More: Norway Wealth Fund Sets Net Zero Target for Portfolio Firms

The world’s biggest single owner of publicly traded companies views climate change as a financial risk and said last year that it would require companies to reach net zero emissions by 2050 at the latest.

On Friday it also outlined guidelines for the use of carbon credits, saying that while businesses should focus on slashing emissions, “additional and verified credits” could be supplemented to “signal high climate ambitions.”