Displacement Rates Untangled
An Impact Innovation Funded Project
Priority Area:
Beyond Life-Cycle Analysis
Displacement rate: ensuring consistency and robustness in avoided emission calculations for circular business models
There is growing interest in the environmental impact of circular business models (CBMs) like resale and rental services, but opinions on their benefits remain mixed. To assess these impacts, it’s crucial to understand the “displacement rate,” which measures how much these alternative models prevent the purchase of new items. Quantifying this rate is challenging, as it involves determining if a second-hand purchase or rented item actually replaces a new purchase. Various organisations have tried to measure displacement, but methods have differed. WRAP has developed an impartial methodology to standardise this measurement across CBMs and align businesses around a consistent standard. This project aims to apply this methodology through case studies, promoting consistent and transparent emissions calculations and increasing trust in environmental claims within the sector.
Dr. Sarah Key
Senior Research Analysts
Sarah is a Senior Analyst at WRAP leading the development of WRAPs footprint calculator for Textiles 2030. She is co-Chair of the Metrics Working Group, directing a group of industry experts to ensure robust and accurate measurement of environmental impacts across the agreement.
Name of Lead Applicant:
Job Title:
Organisation:
Additional Team Members:
Dr. Sarah Key
Senior Research Analyst
WRAP
Nettie Abbott (Analyst, WRAP)
Kyra Elston (Senior Partner Marketing Specialist, WRAP)
Dr Anja Connor-Crabb (Lecturer, University of Leeds)
There is growing interest in the environmental impact of circular business models (CBMs) like resale and rental services, but opinions on their benefits remain mixed. To assess these impacts, it’s crucial to understand the “displacement rate,” which measures how much these alternative models prevent the purchase of new items. Quantifying this rate is challenging, as it involves determining if a second-hand purchase or rented item actually replaces a new purchase. Various organisations have tried to measure displacement, but methods have differed. WRAP has developed an impartial methodology to standardise this measurement across CBMs and align businesses around a consistent standard. This project aims to apply this methodology through case studies, promoting consistent and transparent emissions calculations and increasing trust in environmental claims within the sector.
WRAP, through its Textiles 2030 initiative, is advancing research on the “displacement rate” in circular business models (CBMs) like resale, repair, and rental. WRAP has completed extensive research, including a literature review, pilot survey, cognitive testing and stakeholder consultations, and has recruited four organisations (Vinted, eBay, SOJO and ACS) to participate in further studies. WRAP plans to recruit one more organisationto achieve cross-sectoral representation and insights. It will support these organisations in conducting surveys and will analyse and compile the results into a comprehensive report to determine displacement rates. The findings will be disseminated with a broad range of stakeholders in 2025.
The impact beyond the scope of the project includes the potential opportunity for CBM-specific displacement rates to be included within Textiles 2030 reporting, , increasing the accuracy of results and progress towards the Textiles 2030 targets. Beyond use in Textiles 2030 reporting, we hope that organisations will use the methodology in their own climate and impact reporting so that public claims about the positive impact of CBMs is consistent across different organisations and can be trusted by citizens. This will support the business case for CBMs, demonstrating their key role in meeting climate targets for the textiles sector.
Expected start date: 19th August 2024
Expected end date: 14th March 2025
Project duration: 7 months