Sealy’s asset management firm, Kohlberg Kravis Roberts & Co. (KKR), a leading global asset firm, announced that it has partnered with Environmental Defense Fund (EDF) on the Green Portfolio Project, a first-of-its-kind initiative which recently revealed environmental management can help drive business success even in today’s challenging economic climate.
Sealy is one of three pilot companies that together has already saved approximately $16.4 million in operating costs and prevented more than 25,000 metric tons of greenhouse gas emissions, 3,000 tons of paper use and 650 tons of solid waste by implementing the tools developed through the partnership in 2008.
“As North America’s No. 1 bedding manufacturer, its imperative we take a strong leadership position in protecting and sustaining the environment,” said Larry Rogers, Sealy president and CEO. “In light of the difficult environment for the mattress industry, we continue to make progress in the areas of our business we can control and the Green Portfolio Project further demonstrates Sealy’s commitment to cost efficiency, as well as being environmentally responsible.”
The Green Portfolio Project began in May 2008, building on successful environmental initiatives already underway. The project brings together KKR’s private equity model of building strong companies for the long term and rigorous metrics for performance improvement with EDF’s environmental expertise. Together, the companies developed a set of analytic tools and processes to establish goals and measure improvements in companies’ key environmental performance areas including greenhouse gas emissions, waste, water, forest resources and priority chemicals.
Sealy currently is reducing waste in product manufacturing and decreasing greenhouse gas emissions from product transportation. In 2008, Sealy developed baselines for solid waste management and greenhouse gas emissions and reduced its impacts in these areas by
recycling raw materials used for producing bedding and improving driver policies and truck technologies to reduce waste and decrease greenhouse gas emissions.
The process helped Sealy to cost-effectively improve efficiency and reduce waste while addressing the environmental impacts of business, saving $1.2 million in fuel costs and avoiding more than 3,000 metric tons of CO2 emissions (equivalent to over 600 cars) by improving the efficiency of its fleet by almost 9% (gallons/stop). In addition, Sealy saved over $4 million in material costs and avoided 650 tons of solid waste (equivalent to over 46 garbage trucks) by reducing scrap per bed by 16% in 2008.
This year, Sealy plans to further reduce greenhouse gas emissions from energy and fuel use by improving delivery routing, installing speed governors, reducing idling time and incentivizing drivers to improve fuel economy. The company also plans to continue reducing the amount of solid waste produced by improving material recycling rates and manufacturing processes.
About Sealy Corporation: Sealy is the largest bedding manufacturer in the world with sales of $1.7 billion in 2007. The Company manufactures and markets a broad range of mattresses and foundations under the Sealy®, Sealy Posturepedic®, Stearns & Foster®, and Bassett® brands. Sealy operates 26 plants in North America, and has the largest market share and highest consumer awareness of any bedding brand on the continent. In the United States, Sealy sells its products to 2,900 customers with more than 7,000 retail outlets. Sealy is also a leading supplier to the hospitality industry. For more information, please visit www.sealy.com.
About Environmental Defense Fund: A leading national nonprofit organization, Environmental Defense Fund represents more than 500,000 members. Since 1967, Environmental Defense Fund has linked science, economics, law and innovative private-sector partnerships to create breakthrough solutions to the most serious environmental problems. Environmental Defense Fund has a 20 year track record of success in partnering with business. To maintain its independence and credibility, EDF accepts no money from corporate partners; generous individuals and foundations fund its work. For more information, please visit www.edf.org.
About Kohlberg Kravis Roberts & Co: Established in 1976, KKR is a leading global alternative asset manager. KKR’s franchise is sponsoring and managing funds that make investments in private equity, fixed income and other assets in North America, Europe, Asia and the Middle East. Throughout its history, KKR has brought a long-term investment approach, focusing on working in partnership with management teams of its portfolio companies and investing for future competitiveness and growth. Funds that KKR sponsors include traditional private equity funds and KKR Private Equity Investors, L.P. (NYSE Euronext Amsterdam: KPE), a permanent capital fund that invests in KKR-identified investments; two credit strategy funds, KKR Financial Holdings LLC (NYSE: KFN) and the KKR Strategic Capital Funds, which make investments in debt transactions; and separately managed accounts focused on a variety of asset classes. KKR has offices in New York, Menlo Park, San Francisco, Houston, Washington D.C., London, Paris, Hong Kong, Tokyo, Beijing, Mumbai and Sydney. More information about KKR is available at: www.kkr.com.