Results

Sealy

estimated cumulative results (2008-2010)

  • $5.8M in fuel costs avoided
  • 18,000metric tons of GHG emissions avoided
  • 3.9M lbsof waste avoided
  • $10.9Min waste costs avoided

Sealy Corporation is a leading global bedding manufacturer. It markets a broad range of mattresses and foundations under the Sealy®, Sealy Posturepedic®, Stearns & Foster® and Bassett® brands.

Key Environmental Performance Areas:

Greenhouse Gas Emissions (Facilities)

In 2011, Sealy continued its focus on measuring and managing energy consumption in its manufacturing plants against a 2008 performance baseline. In absolute terms, GHG emissions from manufacturing plants have increased 2%, compared to a 2008 baseline, while efficiency has declined by 12% (GHGs/unit shipped) over the same time period. The decline in efficiency is associated with a decline in the number of units shipped as well as an increase in square footage, and therefore additional fixed energy consumption, of more than 2.5% in 2011.

Results

Sealy: Manufacturing Plants GHG Efficiency (2008 Baseline)

Notes:

  • See methodology section for description of avoided and efficiency calculations.
  • The total % change is aggregate change between the baseline year and the most recent year of data. All other % changes are expressed as year-over-year.
Estimated results 2009 2010 2011 Total
Change in productivity - GHGs/unit (%) 6% 4% 2% 12%
Change in absolute GHGs (%) -5% 4% 4% 2%

Actions

In 2011, Sealy focused on finding energy savings opportunities by implementing the following practices:

  • Launched a Kaizen pilot program at select mattress plants to improve process flow and reduce utilities consumption

Future Plans

Throughout 2012 and 2013, Sealy is increasing its focus on the energy efficiency of its facilities and is considering or actively implementing the following practices:

  • Scaling up Kaizen efforts proven at the pilot level
  • Upgrading lighting technologies at half of the reporting facilities
  • Eliminating compressed air leaks and reducing the load on the compressor

Greenhouse Gas Emissions (Fleet)

Sealy is actively measuring and managing its fleet performance and made significant fleet upgrades in 2011. In absolute terms, GHG emissions from fleet operations have decreased 24%, compared to a 2007 baseline, while fleet efficiency improved by 16% (GHG/truck stop) over the same time period. These improvements in fleet efficiency have helped Sealy to avoid almost $5.8 million in fuel costs and more than 18,100 metric tons of GHG emissions since 2007.

In addition to improvements to fleet efficiency, Sealy has increased its backhaul efforts, which reduces the number of empty trucks traveling to Sealy facilities to deliver products or raw materials. As a result, Sealy estimates that its backhaul efforts have had an additional impact of avoiding more than 7,400 metric tons of GHG emissions between 2007 and 2011 and Sealy is making more productive use of its truck fleet.1

Results

Sealy: Fleet GHG Efficiency Results (2007 Baseline)

Notes:

  • See methodology section for description of avoided and efficiency calculations.
  • The total % change is aggregate change between the baseline year and the most recent year of data. All other % changes are expressed as year-over-year.
Estimated results 2008 2009 2010 2011Total
Avoided GHGs (metric tons) 3,700 4,200 4,500   5,700 18,100
Avoided costs $1,400,000 $1,000,000 $1,300,000 $2,100,000 $5,800,000
Change in productivity - GHGs/stop (%) -11% -2% 0% -4% -16%
Change in absolute GHGs (%) -18% -8% 2% -1% -24%

Actions

In 2011, Sealy achieved these results through the following practices:

  • Replaced the entire delivery tractor fleet with more efficient automatic transmissions that meet 2014 EPQ standard with an improvement of over 10% in miles per gallon
  • Implemented regionalized backhaul program and reduced CO2 emissions by 6.5% by using "empty" miles and hauling inbound freight or third party goods
  • Set up distribution centers for spring components
  • Implemented a consolidated freight program of roll goods reducing frequency of delivery from multiple times a week to once or twice weekly
  • Continued to improve on load efficiently in cube utilization of outbound deliveries
  • Determined a standard trailer fleet specification that included emissions reductions from using side skirting and low rolling resistant tires

Future Plans

In 2012 and 2013, Sealy is continuing to focus on the efficiency of its fleet and is considering or actively implementing additional improvements, such as:

  • Increasing emphasis on backhauling raw materials to national level and  increase by half
  • Using trailer fleet specifications in trailer replacements
  • Implementing program to reduce out-of-route miles
  • Implementing a partner code of conduct requiring its partners to be committed to reducing their environmental impact

Waste Reduction (Facilities)

Sealy is actively measuring and managing its material waste from bedding production. In absolute terms, Sealy has reduced bedding scrap by 35%, compared to a 2007 baseline, while productivity has improved by 12% (lbs of scrap/unit produced) over the same time period. These improvements in productivity have helped Sealy to avoid more than $10.9 million and avoid almost 3.9 million pounds of waste since 2007. Over the same time period, Sealy has reduced secondary landfill bedding by 26% on absolute terms, while productivity has stayed relatively flat with a decrease of 1% (lbs of landfill bedding/unit produced).2

Results

Sealy: Manufacturing Waste Reduction Results (2007 Baseline)

Estimated results 2008 2009 2010 2011Total
Scrap Avoided (lbs) 1,265,000 997,000 746,000 858,000 3,867,000
Avoided Costs $4,000,000 $2,800,000 $1,900,000 $2,200,000 $10,900,000
Change in Productivity (scrap) – lbs waste/unit (%) -16% 2% 4% -2% -12%
Change in productivity (landfill bedding) – lbs waste/unit (%) 6% -11% 0% 7% 1%
Change in Absolute Scrap Recycled (%) -32% -8% 4% 0% -35%
Change in absolute landfill bedding (%) -14% -20% 0% 8% -26%

Actions

In 2011, Sealy achieved these results by implementing the following practices:

  • Reduced scrap from the new Stearns & Foster launch to be in-line with Sealy best practices

Future Plans

In 2012 and 2013, Sealy is continuing to focus on reducing waste from its manufacturing process and is considering or actively implementing additional improvements, such as:

  • Building on gains in 2011 of reducing scrap from the new Stearns & Foster launch by an additional ~50% from 2010
  • Adding two new products and a third assembly fabrication location that increased throughput and reduced scrap
  • Utilizing regional distribution center for long lead time items to reduce obsolete inventory

Sealy enrolled in the Green Portfolio Program in 2008 and is reporting results for the fourth time.

  1. The environmental and business impacts of the backhaul efforts are not aggregated with the results associated with improved fleet efficiency in the results table.
  2. In 2010, KKR and Sealy disaggregated landfill bedding and scrap metrics in order to better account for the different activities and cost drivers related to each of these waste streams. As a result, past results have been restated.

Responsible Investment

For more information on KKR’s responsible investment efforts, go to www.kkr2011esg.com.

Program Updates

Dec 17, 2012

16 portfolio companies achieved more than $644 million in financial impact

In 2011, 16 portfolio companies achieved more than $644 million in financial impact and avoid more than one million GHG emissions and 13.2 million cubic meters of water use.[More]
Dec 17, 2012

8 portfolio companies joined the GPP

In 2012, 8 portfolio companies joined the GPP, bringing total participation to 24.[More]
Jun 21, 2012

KKR published its second annual ESG and Citizenship Report

KKR published its second annual ESG and Citizenship Report. http://www.kkr2011esg.com/[More]
May 22, 2012

KKR Green Portfolio Program Announces New Participants

Seven new companies have partnered with the Green Portfolio Program, bringing total enrollment to 23.[More]