Results

US Foods

US Foods, one of America’s most innovative food companies and leading distributors, was one of our first private equity portfolio companies to join KKR’s Green Portfolio Program in 2008, helping to design and pilot the framework.

US Foods has more than 24,000 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 Areas:

• Greenhouse Gas Emissions (Fleet)
• Greenhouse Gas Emissions (Facilities)

Greenhouse Gas Emissions (Fleet)

From 2008 through 2010, US Foods reduced greenhouse gas emissions (GHG) from fleet operations in absolute terms by 15% and improved fleet efficiency by 7% (GHGs/ton of product moved) against a 2007 baseline. These improvements in efficiency helped US Foods avoid almost $21.4 million in fuel costs and more than 69,000 metric tons of GHG emissions since 2007.

Results

U.S. Foods: Fleet Efficiency Results (2007 Baseline)

Actions

In 2010, US Foods 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. More than 1,000 trucks have this route planning technology, which allows the company to reduce the number of routes and miles driven while still meeting customer service requirements
• Continued to update and modernize their fleet by purchasing fuel-efficient vehicles and using right-sized vehicle for each task, such as using a “Sprinter” class vehicle for delivering smaller loads

Through these efforts, US Foods earned a Top SmartWay Score and Certified Partner status from the U.S. Environmental Protection Agency’s (EPA) SmartWay Transport Partnership, which identifies products and services that reduce transportation related emissions to improve air quality and reduce fuel consumption.

Future Plans

In 2011 and 2012, US Foods is continuing to focus on the efficiency of its fleet and is currently considering or actively implementing the following additional practices:

• Running its delivery fleet on sustainable biodiesel fuel made from waste vegetable oils or recycled restaurant greases. Acquiring waste vegetable oil processing company to reduce environmental impact of trucking fleet by recycling waste cooking oil from restaurants to fuel trucks and help customers in the Southeast improve their sustainability profiles
• Purchasing more efficient vehicles to reduce emissions and maximize fuel economy
• Using compressed natural gas (CNG) in fueling parts of its delivery fleet
• Replacing larger trucks with a more fuel-efficient class vehicle made for lighter loads and shorter delivery routes
• Using methanol fuel cells to power distribution centers’ forklift trucks—a potential zero-emission technology
• 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

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Greenhouse Gas Emissions (Facilities)

In 2008 through 2010, US Foods decreased GHG emissions in its distribution centers by 5% in absolute terms and improved efficiency by 13% (GHGs/square foot) against a 2008 baseline. These improvements in efficiency helped US Foods to avoid approximately $9.3 million in electricity costs and approximately 73,000 metric tons of GHG emissions since 2008.

Results

U.S. Foods: Distribution Center Efficiency Results (2008 Baseline)

Actions

In 2010, US Foods achieved these results through the following practices:

• Replaced traditional high intensity lighting with energy efficient, and often sensor based, lighting in distribution facilities
• Invested in efficient management refrigeration systems, including cascade refrigeration systems which use CO2 as a refrigeration fluid in place of ammonia, thereby reducing environmental impact and increasing energy efficiency
• Utilized equipment certified by the EPA to significantly reduce energy consumption
• Utilized high efficiency HVAC systems
• Used robotic pallet wrappers to reduce outbound packaging needs
• Opened the company’s first LEED Certified building in Buda, Texas

Future Plans

In 2011 and 2012, US Foods is continuing to focus on the efficiency of its facilities and is currently considering or actively implementing the following additional practices:

• Three solar panel installations were completed in 2011 with plans to install three additional solar panel arrays in 2012
• Continuing to retrofit existing facilities with energy efficient fluorescent lights and installing LED lighting technology that incorporates efficient thermal and optical properties
• Invest in state-of-the-art technology, called Proof of Delivery, to give US Foods’ drivers and warehouse employees new, wireless, handheld electronic devices to scan each case of product they load and deliver. The technology confirms that the products ordered by customers match the products delivered by drivers and dramatically reduces the need for paper without loss of performance
• Exploring waste management and recycling initiatives by reusing rackable, plastic pallets with an estimated life cycle of more than 15 years
• Installing additional robotic pallet wrappers to reduce outbound packaging needs
• Participating in pooled pallet banks to protect forests
• Building additional LEED-certified facilities

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US Foods enrolled in the Green Portfolio Program in 2008 and is reporting results for the third time. For more information on US Foods’ commitment to corporate responsibility, please visit its Corporate Citizenship program.