Secondhand impact, quantified

Avoided emissions are the difference in emissions between a scenario in which a solution exists and a reference scenario in which it does not. For secondhand business models, the comparison is between a scenario where the secondhand offering exists and a proportion of users buy used instead of new, and a scenario where the business does not exist and consumers buy new items instead. The difference can be large or small, and the results can also show that no emissions are avoided.

The displacement rate is the proportion of secondhand purchases that replace the purchase of a new comparable item, usually derived by surveying the people who bought the items. Not every secondhand purchase displaces a new item. Some buyers could not have afforded the item new, some buy on impulse because the price is low, and some buy secondhand as a matter of principle and would not have bought new. Aito follows the displacement rate methodology developed by WRAP.

Carbon offsets are tradeable credits funding external climate projects. They can cover emissions avoidance and direct carbon removal. The one similarity is that carbon offsets based on emissions avoidance and avoided emissions both rely on a comparative calculation. Avoided emissions represent the potential positive impact of your products or services, compared to a reference scenario. They cannot be bought, sold, or retired like offsets.

No. Avoided emissions are the result of comparing the current situation and a theoretical reference scenario. They do not represent direct emissions reductions in the actual business model. Standard carbon accounting frameworks keep avoided emissions separate from your official greenhouse gas inventory.

Yes, when reported separately from your greenhouse gas inventory. Avoided impact is usually published in its own section of a sustainability report, or in a standalone impact report. Avoided emissions should not be added to your inventory or subtracted from your footprint. The specific rules depend on your reporting framework and jurisdiction.

A rebound effect is a reduction in the expected emissions savings from a solution, caused by the behaviour the solution itself encourages. In secondhand business models, rebound effects can include increased total consumption due to the affordability of secondhand items.

We prioritise primary data from your business, secondhand users, and logistics partners. Where primary data is unavailable, we apply assumptions that are conservative in the direction of lower avoided impact. The displacement rate carries a lot of uncertainty, which is why we derive it from your users rather than from published averages. We state which rebound effects our research quantifies and which it does not, because isolating every one of them is not feasible. We are transparent about all assumptions, data gaps, and methodology boundaries.

No. Aito is an independent calculation partner quantifying the avoided emissions and other impacts of your secondhand business. Third-party assurance has to come from a provider independent of the party that produced the figures. Our calculations and assumptions are transparent, and we are happy to collaborate with your external auditor if you need your results formally assured.