When I lived in Kelowna I worked at Lakehouse for three years. One brand I fell in love with while I was working there was Loll Designs. They design/manufacture outdoor furniture made from recycled plastic (mostly from single-use milk jugs). I bet you’re wondering how comfortable milk jugs are to sit on, or how that would look in your backward. I encourage you to browse their website because there is so much to see, but from my personal experience I can assure you that the furniture is extremely comfortable!

Most of the customers who shopped frequently Lakehouse had higher-incomes so the premium pricing of Loll furniture was never an issue. In terms of Gfk Roper’s shades of green, I don’t think Loll is targeting the “True-blue Greens” or “Greenback Greens” segments. I think their products are definitely attractive to these segments, but I don’t think they are the company’s profit drivers. I am confident in my opinion because when I was selling Loll products at Lakehouse the recyclable materials feature was the last thing they wanted sales associates to mention. In terms of positioning, I think they have adopted a “great first, green second strategy” – design and durability are their primary focus.

Loll designs has incorporated sustainability throughout their entire value chain. In terms of the manufacturing process, Loll confirmed that they recycle 95% of the waste that they produce. This waste is sent to a local recycling plant. All of the Loll furniture is 100% recyclable, so after several years of use the consumers can sustainably dispose their furniture! It is obvious that the product themselves are sustainable, since they are made entirely from recycled plastic. But it doesn’t stop there – since 2008 Loll has implemented an annual initiative called “Plant a Tree,” and they are proud members of the global movement “1% for the planet.” Loll designs is a great representation of what a long term sustainability focus looks like.

The article “What Will Revolutionize Sustainability Reporting in 2016 and Beyond?” provides a wonderful summary of what I believe to be the biggest sustainability trend of 2016: a rapidly increasing demand for corporations to adjust their reporting landscape and communicate their commitments to sustainability with the public. I think this change in sustainability reporting will become essential for all businesses in the near future if they want to remain profitable. As a consumer, I would be very skeptical and concerned if a company was not disclosing information regarding their sustainability initiatives and environmental impact. I firmly believe that the firms who choose not to participate in this trend of transparency will pay the price – and the price will be expensive, perhaps detrimental to their success. Word of mouth isn’t necessarily a new trend for 2016, but I do think it is something that should have been discussed in this article. Word of mouth is so incredibly powerful, especially for my generation (the “tech-savvy” Millennials).

Like the article mentions, there are external benefits to a company that reports its sustainability initiatives – such as building trust and brand loyalty. I think the article should have mentioned a key catalyst to achieve that trust and loyalty, word of mouth. A company that is environmentally responsible will create a positive word of mouth or hype (if they communicate their sustainability initiatives effectively – and that’s where my friend marketing comes in). The generation Y segment relies heavily on their friends, relatives, and peers when they are making purchase decisions. It all comes down to positive word of mouth – which, in my opinion, has the ability to make or break a business. Research has proven that consumers weigh negative word of mouth more heavily than the alternative positive word of mouth. This was proven in the Prospect Theory which says, “consumers weigh losses from a reference point more than equivalent sized gains.” To read more on this theory of loss aversion, please see the following link.

This proves that a business that is not reporting its sustainability initiatives or is destructing the environment will not only damage their brand image, but perhaps even kill it. Compliance with sustainability standards should be seen as an opportunity, a way to create a competitive advantage. The reputation of a company is critical, and I think it won’t be long until sustainability is encompassed in every brand; let’s face it, we are nearly there!