Mubasher: The world’s biggest sovereign wealth fund, the Government Pension Fund of Norway, is reportedly planning to expand its investments in assessing climate risk, Bloomberg reported on Thursday.

The $1.1 trillion SWF will widen the horizon of climate-related activities to include flood analysis for its real estate assets.

The fund has a group of instruments to measure climate change’s impact on demand, spur regulation, or physically damage assets.

Norway’s fund slashed its exposure to coal production and set and adhere to ethical guidelines with regard to investments that include climate and environmental standards.

“We encourage companies to move from words to numbers so that we can better evaluate their operations and the financial risks and opportunities associated with their environmental and social conduct,” the fund’s deputy CEO Trond Grande commented.

Norwegian SWF divested 142 companies between 2012 and 2018 based on its own assessment of climate risk, along with 70 companies excluded based on the fund’s coal criterion.