CNBC’s Trevor Curwin on eco-improvements in railroad cars – and quotes HIP CEO R. Paul Herman:

EXCERPT: “With more efficient construction of next-generation railway cars, there is more room for larger customer loads and cutting rail operators’ operational costs.

“There continues to be pressure on companies to reduce their cost structures,” says R. Paul Herman, founder and CEO of sustainable investment firm HIP Investor. … READ THE FULL FEATURE

THE NEWS: The SEC voted on Wednesday, January 27^th, 2010, to issue “interpretive guidance” to corporations — essentially requesting that firms include risks pertaining to climate change in their public filings. The Securities and Exchange Commission – and federal law –   has long required the corporate disclosure of “material risk“ to potential investors, so this vote does not impose any new legal requirements technically speaking. The SEC guidance advises companies to disclose risks relating to climate change regulation and legislation, international accords, “Indirect Consequences of Regulation or Business Trends,” and the physical effects of climate change.

THE REACTION: The vote was met with great appeal from large institutional investors and environmentalists who have been petitioning the SEC for several years to require an increase in such transparency. Anne Stausboll, CEO of pension fund CalPERS said:

“Investors have a fundamental right to know which companies are well positioned for the future and which are not.”

Some speculation by DailyFinance’s Zac Bissonnette and The Wall Street Journal’s Kara Scannell and Siobhan Hughes have deemed the SEC’s ruling as political feuding and a terrible waste of time, while Triple Pundit touts the vote as a hard fought victory for investors. Reuters and other news stations have been covering the petitions initiated during the George W. Bush administration.

WHAT’S NEXT? With this new information being published and discussed by corporations, look for a shift of investments towards companies with better environmental performance – and away from those with lesser eco-results. Large institutional investor petitioned for this SEC ruling, so do not be surprised when they shift their portfolios based on increasing disclosure about risks – and opportunities.

What do you think?   Reply below:

CNBC.com’s Trevor Curwin interviews HIP about managing the pollution associated with carbon and greenhouse gasses, upcoming carbon legislation and competitive positioning across industries – and how it will affect investor portfolios.

“With carbon cap-and-trade legislation before Congress and increasing pressure from shareholders, US companies know they’ll have to deal with their greenhouse gas emissions, or carbon footprint, and many are jumping the gun to change their carbon liability into an asset.

“The best-managed companies are evaluating their carbon footprint,” says R. Paul Herman, founder and CEO of HIP Investor Inc., a Californian investment advisory firm that has created two sustainability indexes tracking the S&P 100 and S&P 500 constituent companies. “And they’re managing it lower to save energy and costs, reduce their future volatility of materials costs, mitigate potential environmental liabilities, and create new competitive advantages.”

Getting a handle on these emissions, however, takes work. …

CLICK HERE TO READ THE FULL FEATURE

HIP Commentary: “The New Fundamentals of Investing” What are 10 indicators to evaluate for your portfolio when seeking Human Impact + Profit? Read HIP CEO R. Paul Herman’s commentary in Sustainable Industries’ Money Issue. CLICK HERE TO READ THE FEATURE

HIP Commentary in Sustainable Industries

“Cleantech Grows In the Investor Community”

Where are the opportunities for an investor seeking “clean-tech” innovations? They may already be in an investor’s portfolio today – including GE, Honeywell, and Caterpillar.   These and other S&P 500 companies are generating top-line revenue from products that are more efficient in energy, water and waste.   Many of these products are also profitable, generating shareholder value.

Read HIP CEO R. Paul Herman’s commentary in Sustainable Industries magazine and learn how S&P 500 companies are becoming more HIP (Human Impact + Profit) and portfolio choices for investors.

CLICK HERE TO READ THE FEATURE