PARTICIPATING COMPANIES AND RESULTS

 

Accellent  |  Biomet  |  Dollar General  |  First Data  |  HCA  |  Lehigh Phoenix

Oriental Brewery  |  Primedia, Inc.  |  Sealy  |  SunGard  |  Tarkett  |  U.S. Foodservice

 

Accellent

Accellent provides fully integrated outsourced manufacturing and engineering services to the medical device industry. Accellent enrolled in KKR’s Green Portfolio Program in 2009 and is focusing on improving energy efficiency and reducing greenhouse gas emissions from manufacturing facilities, which represent the company’s largest source of energy use.

Key Environmental Performance Area: Greenhouse gas emissions
In 2009, Accellent began actively measuring and managing energy consumption in five of its manufacturing facilities and established a 2007 performance baseline as part of the Green Portfolio Program. In absolute terms, GHG emissions from facilities have decreased 16%, compared to a 2007 baseline, while efficiency has improved by 14% (GHGs/$ revenue) over the same time period. This efficiency improvement has helped Accellent to identify cost savings of $785,000 and avoid 6,600 metric tons of GHG emissions – the equivalent of taking over 1,000 homes off the electrical grid for one year – since 2007.

Results

Actions
In 2008 and 2009, Accellent achieved these results by implementing the following practices:

• Upgraded lighting technologies at one of its five major facilities to serve as a pilot program
• Installed energy management systems at its largest energy-use facility to better understand and balance energy demand
• Incorporated recovery equipment to capture and reclaim emissions from certain manufacturing processes

Future Plans
In 2010, Accellent will continue to focus on energy efficiency at its facilities and is considering additional improvements, such as:

• Upgrading lighting technologies at the balance of its major manufacturing facilities
• Installing energy management systems at an additional 40% of its major facilities
• Identifying manufacturing process improvements to make more efficient use of resources

Accellent enrolled in the Green Portfolio Program as part of the second phase of companies to join and is reporting results for the first time.

Biomet

Biomet is a leading designer and manufacturer of medical devices and products used primarily by surgeons and medical specialists. Biomet enrolled in KKR’s Green Portfolio Program in 2009 and is focusing on improving energy efficiency and reducing GHG emissions at its manufacturing facilities.

Key Environmental Performance Area: Greenhouse gas emissions
In 2009, Biomet began actively measuring and managing energy consumption in its manufacturing facilities and established a 2007 performance baseline as part of the Green Portfolio Program.  In absolute terms, GHG emissions from manufacturing facilities have stayed relatively flat compared to 2007, while efficiency has improved by 13% (GHGs/$ revenue) over the same time period. The improvements in efficiency have helped Biomet to identify cost savings of $2.1 million and avoid 10,500 metric tons of GHG emissions – the equivalent of taking over 1,600 homes off the electrical grid for a year – since 2007.

Results

Actions
In 2008 and 2009, Biomet achieved these results by implementing the following practices:

• Installed temperature controls (both manual and automatic) in all facilities
• Improved lighting, including lights out during off-shifts and light sensors in offices
• Upgraded lighting in the Warsaw and Fairlawn manufacturing sites
• Consolidated smaller facilities into larger ones

Future Plans
In 2010, Biomet will continue to focus on energy efficiency at its facilities and is considering or actively implementing additional improvements, such as:

• Creating a forum across operating units where best practices can be shared
• Formally reviewing all new capital equipment purchases to ensure energy efficiency requirements are met

Key Environmental Performance Area: Priority chemicals
Biomet is also focusing on reducing its use of priority chemicals, including:

• Elimination of Toluene in its Warsaw facilities
• Elimination/reduction of Acetone in Warsaw, to be scaled to other facilities when proven
• Upgrading wastewater treatment facilities in Jinhua and Changzhou

In 2010, Biomet will continue to scale up these efforts and report results publicly.

Biomet enrolled in the Green Portfolio Program as part of the second phase of companies to join and is reporting results for the first time.

 

Dollar General

Dollar General is a leading discount retailer with more than 8,900 neighborhood stores. Dollar General enrolled in KKR’s Green Portfolio Program in 2009 and is focusing on its efforts to: improve energy efficiency in its stores, Store Support Center, and distribution centers; improve the efficiency of its distribution fleet; and reduce waste in its stores.

Key Environmental Performance Area: Greenhouse gas emissions (facilities)
In 2009, Dollar General began actively measuring energy consumption through the Green Portfolio Program in its stores, Store Support Center, and distribution centers. In absolute terms, GHG emissions from these sources have increased 8%, compared to a 2007 baseline, primarily due to an expansion in operations. Over the same time period, efficiency has improved by 10% (GHGs/carton shipped) at distribution centers, 7% (GHGs/operating hour) at stores, and 20% (GHGs/headcount) at Store Support Center. These improvements in efficiency have helped Dollar General to identify cost avoidance of $16 million and avoid 113,000 metric tons of GHG emissions — the equivalent of taking over 17,000 homes off the electrical grid for a year — since 2007.

Results

Actions
In 2008 and 2009, Dollar General achieved its results through the following practices:

• Consolidated Distribution Center operating shifts and rationalized powered equipment usage
• Installed Energy Management Systems in stores
• Installed more energy efficient lighting in both retail stores and Store Support Center

Future Plans
In 2010, Dollar General is continuing to focus on improving the energy efficiency of its facilities and is considering or actively implementing the following practices:

• Installing additional Energy Management Systems in both new and existing stores
• Continuing to explore opportunities to replace lighting with more energy efficient fixtures
• Procuring HVAC and other equipment with improved energy usage ratings

Key Environmental Performance Area: Greenhouse gas emissions (fleet)
In 2009, Dollar General began actively measuring the efficiency of its distribution fleet through the Green Portfolio Program. Though it does not own its distribution fleet, Dollar General implemented a number of improvements that directly resulted in improved fleet efficiency. In absolute terms, calculated GHG emissions from the distribution fleet increased 5% compared to a 2007 baseline. Over the same time period, efficiency improved by 11% (GHGs/carton shipped). These improvements in efficiency have helped Dollar General to identify cost avoidance of $51 million and avoid 50,000 metric tons of GHG emissions – the equivalent of taking 9,000 cars off the road for a year – since 2007.

Results

Actions
In 2008 and 2009, Dollar General achieved its results through the following practices:

• Reduced stem miles through improved routing, distribution center to store assignments, and vendor ship point optimization
• Implemented operational and systemic improvements to increase cartons per load for both inbound and outbound shipments

Future Plans
In 2010, Dollar General is continuing to focus on improving the efficiency of its fleet and is considering or actively implementing the following practices:

• Optimizing distribution center to retail store assignments
• Increasing cartons per load (inbound and outbound)

Key Environmental Performance Area: Waste
In 2008 and 2009, Dollar General focused on reducing and recycling cardboard waste from its stores and distribution centers. To measure the financial and environmental impacts of its improvements, it measured waste production and recycling rates against a 2007 baseline. Despite significant growth in store operations, since 2007, Dollar General has reduced its waste production in absolute terms by 68% and has improved its waste efficiency by 75% (cubic yards of waste/$ revenue). These improvements have helped Dollar General to identify combined cost avoidance and recycling revenue of $39 million, to avoid 10.8 million cubic yards of waste – the equivalent of keeping 300,000 garbage trucks from landfills, and to recycle 200,000 tons of cardboard—the equivalent of saving more than four million trees – since 2007.

Results

Actions
In 2008 and 2009, Dollar General achieved these results through the following practices:

• Implemented cardboard recycling programs across its stores and distribution centers
• Sold collected cardboard for post-consumer use

Future Plans
In 2010, Dollar General will continue to focus on reducing waste and is implementing new programs, including:

• Investigating feasibility of recycling plastics
• Recycling of paper, including greeting cards and magazines

Dollar General enrolled in the Green Portfolio Program as part of the second phase of companies to join and is reporting results for the first time.

 

First Data

First Data is a leading provider of electronic commerce and payment solutions for merchants, financial institutions and card issuers globally, with operations in 38 countries, serving over 5 million merchant locations and 1,900 card issuers.

First Data enrolled in the Green Portfolio Program as part of the third phase of companies to join and will begin reporting results at the end of 2010.

 

HCA

HCA is one of the leading healthcare services organizations in the United States. The company owns and operates approximately 163 hospitals and approximately 105 freestanding surgery centers in 20 states and London, England. HCA enrolled in KKR’s Green Portfolio Program in 2009 and is focusing on improving energy efficiency and reducing GHG emissions at its U.S.-based hospital facilities.

Key Environmental Performance Area: Greenhouse gas emissions
In 2009, HCA began actively measuring and managing energy consumption in its hospitals and established a 2008 performance baseline as part of the Green Portfolio Program. In absolute terms, GHG emissions from hospital facilities have decreased 3%, compared to a 2008 baseline, while efficiency has improved by 3% (GHGs/square foot) over the same time period. The improvements in efficiency have helped HCA to identify cost savings of almost $4.7 million and avoid 32,500 metric tons of GHG emissions – the equivalent of taking nearly 5,000 homes off the electrical grid for a year – since 2008.

Results

Actions
In 2009, HCA achieved these results by implementing the following practices:

• Re-commissioned existing heating, ventilating and cooling (HVAC) systems and other energy-consuming systems
• Enhanced energy management systems to improve energy usage performance
• Developed an energy performance tracking tool for each facility

Future Plans
In 2010, HCA will continue to focus on energy efficiency at its facilities and is considering additional improvements, such as:

• Adopting minimum efficiency standards for renovations and appliance purchases
• Implementing relighting projects and other energy efficiency-related facility infrastructure improvements
• Investing in alternative energy sources, such as wind, solar, biomass and combined heat and power that can be used as replacement or supplemental energy sources

HCA has an active Sustainability Steering Committee that is establishing HCA’s guiding Environmental Principles and sustainability strategy and exploring opportunities in additional KEPAs, including waste reduction and water use.

HCA enrolled in the Green Portfolio Program as part of the second phase of companies to join and is reporting results for the first time.

 

Lehigh Phoenix

Lehigh Phoenix, a division of Visant, is the primary provider of cover components, overhead transparencies and juvenile book production servicing the publishing industry within the United States. Its manufacturing facilities are located in Hagerstown, MD, Milwaukee, WI and Rockaway, NJ, with over 600 employees company wide dedicated to manufacturing quality sheet-fed products.

Lehigh Phoenix enrolled in the Green Portfolio Program as part of the third phase of companies to join and will begin reporting results at the end of 2010.

 

Oriental Brewery

Oriental Brewery is one of the two leading breweries in South Korea with a dominant position in the Seoul Metropolitan Area and with a strong portfolio of brands including Cass, OB Blue and Cafri.

Oriental Brewery enrolled in the Green Portfolio Program as part of the third phase of companies to join and will begin reporting results at the end of 2010.

 

Primedia, Inc.

PRIMEDIA Inc. is a leading provider of online, print and mobile platforms that provide consumers with tools and information they need to find a place to live. PRIMEDIA was one of the first KKR portfolio companies to enroll in the Green Portfolio Program in 2008, helping to design and pilot the framework, and is focused on measuring and reducing its paper use.

Key Environmental Performance Area: Forest resources
PRIMEDIA is actively measuring and managing its use of paper in its publications. In absolute terms, paper use decreased 54%, compared to a 2007 baseline, while efficiency improved by 44% (ton of paper/$ revenue) over the same time period. These reductions in paper use have helped PRIMEDIA to identify cost savings of $7.5 million and avoid 8,500 tons of paper use – the equivalent of saving more than 80,000 trees – since 2007.

Results

Actions
In 2008 and 2009, PRIMEDIA achieved these results by implementing the following practices:

• Encouraged users to utilize free online content
• Redesigned publications, such as resizing
• Evaluated paper type to utilize larger amounts of post-consumer content where possible 

Future Plans
In 2010, PRIMEDIA will continue to focus on reducing paper use and is considering or is implementing the following practices:

• Continuing to encourage users to utilize free online content
• Evaluating paper type to utilize larger amounts of post-consumer content where possible

Key Environmental Performance Area: Greenhouse gas emissions
In 2009, PRIMEDIA worked to measure its greenhouse gas emissions related to its fleet and facilities. Due to its inability to obtain transparency into the impacts of these operations, PRIMEDIA is unable to track performance improvement. However, it continues to consolidate office space and reduce its distribution and sales fleet footprints.

PRIMEDIA enrolled in the Green Portfolio Program as part of the first phase of companies to join and is reporting results for the second time.

 

Sealy Corporation

Sealy Corporation is North America’s No. 1 mattress brand and was one of the first KKR portfolio companies to enroll in the Green Portfolio Program in 2008, helping to design and pilot the framework. In 2008, Sealy focused on its efforts to improve the efficiency of its distribution fleet and to reduce waste from its operations. In 2009, the company added a focus on improving the energy efficiency of its manufacturing plants.

Key Environmental Performance Area: Greenhouse gas emissions (fleet)
Sealy is actively measuring and managing its fleet performance. In absolute terms, GHG emissions from fleet operations have decreased 23%, compared to a 2007 baseline, while fleet efficiency improved by 28% (GHG/truck stop) over the same time period. These improvements in fleet efficiency have helped Sealy to identify cost savings of $3.5 million and avoid 13,500 metric tons of GHG emissions – the equivalent of taking almost 2,500 cars off the road – since 2007.

Results

Actions
In 2008 and 2009, Sealy achieved these results through the following practices:

• Implemented routing software to create more efficient delivery routes to and from all mattress plants
• Implemented focused improvements in pieces/cubes per load to reduce total loads needed for delivery
• Installed fuel governors and wind fairings and monitorined idling
• Held driver mileage competitions and monthly MPG efficiency reviews

Future Plans
In 2010, Sealy will continue to focus on the efficiency of its fleet and is considering or actively implementing additional improvements, such as:

• Testing routing from a central location in order to have the most efficient schedulers route all of the trucks
• Increasing emphasis on backhauling raw materials to reduce need for common carrier service
• Launching a network analysis to ensure its customer base is serviced from the most logistics-efficient plant 

Key Environmental Performance Area: Greenhouse gas emissions (facilities)
In 2009, Sealy began actively measuring and managing energy consumption in its manufacturing plants and established a 2008 performance baseline for electricity use. In absolute terms, GHG emissions from manufacturing plants have decreased 6%, compared to a 2008 baseline, while efficiency has improved by 2% (GHGs/unit produced) over the same time period. These improvements in efficiency have helped Sealy to identify cost savings of $65,000 and avoid 570 metric tons of GHG emissions – the equivalent of taking 88 homes off the electrical grid for a year – since 2008.

Results

Actions
In 2009, Sealy achieved these results by implementing the following practices:

• Launched a pilot program at select mattress plants to reduce utilities consumption

Future Plans
In 2010, Sealy will continue to focus on the energy efficiency of its facilities and is considering or actively implementing additional improvements, such as:

• Scaling up efforts proven at the pilot level
• Upgrading lighting technologies at 100% of the reporting facilities
• Eliminating compressed air leaks, reducing the load on the compressor, and reducing energy consumption
• Installing energy management systems to better track energy demand

Key Environmental Performance Area: Waste
Sealy is actively measuring and managing its material waste from bedding production. In absolute terms, Sealy has reduced bedding waste by 37%, compared to a 2007 baseline, while productivity has improved by 19% (lb of waste/unit produced) over the same time period. These improvements in productivity have helped Sealy to identify cost savings of $8.5 million and avoid 2.9 million lbs of waste – the equivalent of keeping more than 100 garbage trucks from landfills – since 2007.

Results

Actions
In 2008 and 2009, Sealy achieved these results by implementing the following practices:

• Modified machine settings to better utilize material and reduce scrap
• Instituted rigorous standard operating procedures to measure and report waste to ensure compliance

Future Plans
In 2010, Sealy will continue to focus on reducing waste from its manufacturing process and is considering additional improvements, such as:

• Reducing scrap from the new Stearns & Foster launch to be in-line with Sealy best practices
• Regionalizing high speed, high volume processes that increase throughput and reduce scrap

Sealy enrolled in the Green Portfolio Program as part of the first phase of companies to join in 2008 and is reporting results for the second time.

 

SunGard

SunGard is one of the world’s leading software and technology services companies with more than 20,000 employees, serving more than 25,000 customers in more than 70 countries. SunGard joined the Green Portfolio Program in 2009 and is focusing on improving energy efficiency and reducing GHG emissions at its U.S.-based data centers.

Key Environmental Performance Area: Greenhouse gas emissions
In 2009, SunGard began actively measuring and managing energy consumption in its Availability Services data centers and established a 2008 performance baseline through the Green Portfolio Program. In absolute terms, GHG emissions from Availability Services have increased 6%, compared to a 2008 baseline, while efficiency has improved by 7% (GHGs/square foot) over the same time period. The improvements in efficiency have helped SunGard to identify cost savings of $3.8 million and avoid 20,700 metric tons of GHG emissions – the equivalent of taking more than 3,100 homes off the electrical grid for a year – since 2008.

Results

Actions
In 2009, SunGard achieved these results through the following practices:

• Leveraged Energy Management Systems to track energy use and identify areas of improvement
• Addressed managed services growth by optimizing existing space
• Generated economies of scale through enhanced infrastructure utilization

Future Plans
In 2010, SunGard will continue to focus on energy efficiency at its facilities and is considering additional improvements, such as:

• Scaling up pilot-level efforts at data centers
• Installing sub-meters to better track energy use
• Rolling out lighting retrofits

SunGard is actively measuring and managing energy use as part of its larger sustainability efforts. SunGard is also participating in KKR’s Green IT Working Group.

SunGard enrolled in the Green Portfolio Program as part of the second phase of companies to join and is reporting results for the first time.

 

Tarkett

Tarkett is a leading provider of innovative and sustainable flooring and sports surfaces. Some 9,000 employees serve Tarkett’s customers in 100 countries and from 28 different production sites.

Tarkett enrolled in the Green Portfolio Program as part of the third phase of companies to join and will begin reporting results at the end of 2010.

 

U.S. Foodservice

U.S. Foodservice, one of America’s premier foodservice distributors, was one of the first in the KKR portfolio to join the Green Portfolio Program in 2008, helping to design and pilot the framework. U.S. Foodservice has more than 25,000 employees in over 60 locations nationwide and operates one of the largest private trucking fleets in the country. The company strives to reduce the environmental impact of its operations by continually investing in infrastructure, technology and protocols that help eliminate vehicle emissions and increase energy efficiency at its distribution centers.

Key Environmental Performance Area: Greenhouse gas emissions (fleet)
In 2008 and 2009, U.S. Foodservice reduced greenhouse gas emissions (GHG) from fleet operations in absolute terms by 13% and improved fleet efficiency by 5% (GHG/ton of product moved) against a 2007 baseline. These improvements resulted in savings of $14.6 million and avoided almost 45,000 metric tons of GHG emissions —the equivalent of taking more than 8,000 cars off of the road – since 2007.

Results

Actions
In 2008 and 2009, U.S. Foodservice achieved these results through the following practices:

• Reduced idle times through driver awareness training and automatic idle shut-off
• Installed maximum speed controls on vehicles
• Invested in strategic route-planning technologies to reduce fuel consumption
• Formed partnerships with government regulators, such as the U.S. Environmental Protection Agency’s (EPA) SmartWay℠ Transport Partnership, in order to better understand and evaluate environmental performance and energy use, set improvement goals, and take measurable, concrete actions to reduce the impact of transportation on the environment and company

Future Plans
In 2010, U.S. Foodservice will continue to focus on the efficiency of its fleet and is currently piloting or considering implementing the following additional practices:

• Running its delivery fleet on sustainable biodiesel fuel made from vegetable oils, animal fats or recycled restaurant greases
• Exploring the use of compressed natural gas (CNG) in fueling its delivery fleet as part as the company’s effort to reduce emissions from the use of fossil fuels and to lower its carbon footprint
• Using methanol fuel cells to power distribution centers’ forklift trucks—a potential zero emission technology
• Painting the tops of the fleet’s tractor-trailers with white insulator paint to reflect heat from the truck’s surface during the daytime will reduce the pre-cooling needs in the evening, when product is loaded for delivery
• Reusing the oil from trucks, compressors or other equipment at distribution centers to heat hot water tanks so that waste oil leaving local distribution centers is minimized

Key Environmental Performance Area: Greenhouse gas emissions (distribution facilities)
In 2008 and 2009, U.S. Foodservice decreased GHG emissions in its distribution centers by 13% in absolute terms and improved efficiency by 15% (GHGs/square foot) against a 2007 baseline. These improvements saved $7.7 million and avoided 56,300 metric tons of GHG emissions – the equivalent of taking more than 8,600 homes off the electrical grid for a year – since 2007.

Results

Actions
In 2008 and 2009, U.S. Foodservice achieved these results through the following practices:

• Replaced traditional high intensity light fixtures with energy efficient high intensity fluorescent lights
• Invested in efficient management refrigeration systems
• Deployed software to control fan-cycling of evaporators throughout the distribution centers, turning them off at optimum temperature rather than leaving them on a continuous run
• Installed programmable thermostats
• Utilized equipment certified by the EPA to reduce energy consumption
• Utilized high efficiency HVAC systems

Future Plans
In 2010, U.S. Foodservice will continue to focus on the efficiency of its facilities and is currently piloting or considering implementing the following additional practices:

• Continuing to retrofit existing facilities with energy efficient fluorescent lights
• Installing solar panels in select facilities
• Installing LED lighting technology that incorporates efficient thermal and optical properties
• Exploring waste management and recycling initiatives by reusing rackable, plastic pallets with an estimated life cycle of more than 15 years
• Using robotic pallet wrappers to reduce outbound packaging needs
• Testing an environmentally friendly chemical for refrigeration cooling towers to determine if the company can reduce water evaporation and overall water usage
• Participating in pooled pallet banks to protect forests
• Building LEED-certified facilities

U.S. Foodservice enrolled in the Green Portfolio Program as part of the first phase of companies to join in 2008 and is reporting results for the second time.

Additional details on terminology and methodology