OLX reveals that the sale of used items prevented the emission of 625 thousand tons of CO2e

A OLX, the largest classifieds marketplace for used products, cars and real estate in Brazil, launched the Second Hand Effect (SHE) report during the week of World Environment Day. The study points out that the sale of second-hand products potentially avoided 625,357 tons of CO2e emissions. By extending the useful life of products, our users have contributed to the circular economy by reducing greenhouse gas emissions linked to the manufacturing, transportation and packaging of new products.

This amount is equivalent to the CO2 emissions of 5.6 million round trips between São Paulo and Rio de Janeiro, or the production of 49 million jeans, or 962 million plastic bottles.

The report was carried out by Vaayu, the world’s first automated software that enables brands and companies in the retail ecosystem to track and reduce their environmental and carbon impact, with support from Adevinta, one of the controlling companies of the OLX Group in Brazil, with the reference year 2023.

The calculations were guided by the GHG Protocol standard and the WRI (World Resources Institute) reference parameters. The data was provided by Grupo OLX, including the number of products sold and the distance the items were transported. The numbers were calculated using Vaayu’s Kria LCA modeling engine.

The amount of greenhouse gases avoided is the result of the emissions saved by second-hand products multiplied by the replacement rate (a metric driven by customer behavior, indicating the probability of a second-hand purchase replacing a new purchase). After that, the CO2e emitted by operations, packaging and deliveries carried out was subtracted from the total.

Among the highlights, carrying out research aimed at our users to understand their behavior in second-hand purchases.

“We are the largest marketplace for used products in Brazil and SHE highlights our contribution to the circular economy. Through OLX, we give previous purchases a new purpose and extend the life cycle of used products. As we always say, just because a product is used for one person doesn’t mean it can’t be new for another. And still generate extra income. In other words, good for those who buy and good for those who sell. Yes, this is a true example of a circular economy. And our users, when they choose a second-hand item, support this cycle. Here at the OLX Group, we will continue to encourage conscious consumption, redefining the way people consume and relate to their products, with a focus on a better future for the planet” says Florence Scappini, Vice President of Marketing at the OLX Group.

The results also take into account the emissions generated by the OLX Group’s operations, including offices, employees’ work trips, materials used on a daily basis, among others. According to the analysis, emissions of 232 thousand tons of CO2 were potentially avoided with the sale of used and used computers and accessories, 147 thousand tons of CO2 with furniture sales and 66 thousand tons of CO2 with cash transactions. audio items, through OLX.

Potential savings combined by OLX users:

625,357 tons of CO2e avoided, which is equivalent to:

5,593,531 million round trips from São Paulo to Rio de Janeiro
+ 962,087,392 million 1.5L plastic bottles
+ 49,631,492 million new pairs of jeans produced

Methodology

The study focuses on specific product categories such as Fashion, Bags and Luggage, Home and Garden, Personal Care and Wellness, Family, Kids and Baby, Leisure, Sports and Hobbies, Electronics and various other consumer products (3) . The product categories within the scope of the OLX marketplace assessment represent a large portion of the total used items successfully sold on the platform.

The analysis for OLX was based on data from approximately 15 million items sold, enriched by insights collected from more than 10,389 OLX users about their buying and selling behaviors. This information, along with detailed footprints of around 15 million items sold, was processed through Vaayu’s API and unique LCA modeling engine to calculate the climate benefits of purchasing secondhand products online across categories selected.

To deepen the understanding of user behavior on OLX, two separate surveys were implemented targeting buyers and sellers. The main objective of these surveys was to gather essential data to estimate the replacement rate and, consequently, the potential for carbon emissions avoided by selling second-hand items.

Additionally, these surveys collected details about delivery logistics, including packaging types and packaging materials. The surveys reached 8524 participants, ensuring a representative sample when considering factors such as market specifics, product category and user activity levels on OLX in the last 6 to 12 months. No incentives/incentives were offered to respondents, and the surveys achieved a response rate of 8.5%.

The amount of potentially avoided emissions is the result of the following calculation: the carbon emitted from manufacturing a new product until it reaches the consumer (an imagined alternative scenario, i.e. the situation in which the consumer would purchase a new item) multiplied by the rate of replacement of a second-hand item with a new one, less emissions generated by the delivery, packaging and associated operations of the purchased second-hand items.

Photo: Disclosure/ Adevinta

Product carbon footprint

To estimate the carbon emissions avoided by purchasing second-hand items on OLX instead of similar new items, it is necessary to account for emissions from production to delivery of the new product. The analysis, as illustrated in the following figure, evaluated the impacts of products from cradle to consumer. The assessment included considerations of energy and materials use, transportation, natural resource extraction, and waste management at each stage of the product life cycle.