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A methodology for correlating annualized replacement rate (ARR) reduction to sustainability benefits

By Kok Yiang, Ryan Bradley, Lin Shi
2022
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Reducing the Annualized Replacement Rate (ARR) of a product brings a two-fold benefit to its sustainability impact. Firstly, it reduces the warranty stockpile and therefore a lower carbon footprint required to fulfill warranty replacements. Secondly, it extends the lifetime of the product, which reduces the overall carbon footprint every year during use. This paper discusses a methodology to quantify the amount of carbon emission (kgCO2e) that is mitigated when the ARR of a consumer product is reduced because of durability improvements. This methodology is generalizable and can be applied to all consumer products in any product category.
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