WRAP’s standardised methodology for calculating displacement rates for clothing circular business models.
In 2012, WRAP introduced a methodology to help businesses calculate displacement rates - the rate at which buying, renting, or repairing an item through a circular business model displaces the purchase of a new item.
Originally designed for resale, this methodology has since been adapted by various organisations, while others have deployed their own approaches, leading to variations in how displacement rates are measured. These inconsistencies reduce how useful the calculations are, with the potential to mislead consumers and over- or under-state environmental savings.
To address this, WRAP has developed ‘Displacement Rates Untangled’ – an updated methodology for measuring displacement rates, to bring about greater consistency and standardisation across the industry.
Key findings
Tested by preloved and repair platforms eBay, Vestiaire Collective, Depop, The Seam, SOJO and brand Finisterre, the research has provided insight into the environmental savings of circular business models and has produced a UK weighted average displacement rate for resale and, for the first time, repair.
Repair
- For every 5 items repaired, 4 displace a new purchase – resulting in a displacement rate of 82.2%.
- Repairing one cotton t-shirt instead of buying a brand new one could save over 7.5kg CO2e, equivalent to ironing for 25 hours.
Resale
- For every 5 preloved items bought, 3 displace new purchases – resulting in a displacement rate of 64.6%.
- Buying a preloved pair of jeans online instead of buying a brand-new pair could save over 30kg CO2e, equivalent to making 600 cups of tea.
This research enables businesses to benchmark their impact and compare performance across the industry. The methodology is also applicable to redistribution, charity retail and rental models.
The project was supported by the IMPACT+ Network, led by Northumbria University and funded by the UKRI Circular Fashion and Textiles Programme: NetworkPlus – a trilateral initiative from the Natural Environment Research Council, Arts and Humanities Research Council and Innovate UK (Grant Ref: NE/ Y004035/1).
Adopt the methodology
For businesses committed to quantifying the impact of circular models, using a standardised methodology is crucial for accurate reporting, emissions reduction claims, and demonstrating environmental benefits to customers.
Join us in adopting this methodology to bring consistency to your reporting. WRAP can support you with the calculations to do this, reach out below.
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