As part of the selection process, environmental, social and corporate governance issues are analysed. Strong awareness of ESG factors by the management of a company demonstrates a desire to mitigate company risks, related to ESG. The Manager believes that ESG factors may influence a company´s intrinsic value. The ESG orientation of management indicates whether ESG criteria are incorporated into the corporate processes. Companies that are incorporating ESG criteria into each investment decision will get a high score for their ESG orientation. A lack of reporting on ESG issues is clearly seen as a negative. Environmental issues can range from as big as nuclear power incidents, climate change and deforestation to local problems with waste management or not using green power. Social issues can include human rights, child labour and consumer protection. Corporate Governance issues can be regarding corruption and nepotism, labour rights and executive compensation. All problems can be identified for the specific company or elsewhere in the value chain. Most of the scores in this category are negative, meaning for corporate behaviour which is not in-line with expectations by stakeholders, which could lead to considerably reputational damage for the company. Only companies that are really outstanding on this field versus their peers, can expect to actually gain from their positive behaviour.