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Making Sense of Sustainability Reporting in LRU Remanufacturing

Updated: Oct 12, 2023


lru-remanufacturing

The remanufacturing of Line Replaceable Units (LRUs) is a significant aspect of various commercial sectors, including on/off-road vehicle industries (such as trucks, construction, and farming) and the aerospace sector. However, a notable challenge facing this field is the accurate reporting of sustainability initiatives and the potential 'greenwashing' that may arise without a standard approach to such reporting.


Various terms – 'overhaul', 'rebuild', 'refurbish', 'recapitalize', 'reset', 'recondition', and more – are used interchangeably to refer to the remanufacturing process. This has led to a considerable degree of confusion within commercial inter-sector and intra-sector ecosystems. The term 'overhaul' in the aerospace sector, overseen by the US Federal Aviation Agency [FAA], is a prime example, signifying a specific like-kind remanufacturing process. Regardless of terminology, the value of remanufacturing processes is vetted by the commercial marketplace, focusing primarily on the quality and cost-effectiveness of the output. Remanufacturers often ensure quality by providing limited or extended warranties comparable to Newly Manufactured Products (NMPs).


While quality assurance can be monitored through warranties and marketplace vetting, sustainability reporting remains a complex area. It is difficult to compare the effectiveness of one business-to-business original equipment manufacturer (B2B-OEM) or supplier's sustainability efforts to another's without a normalized approach. This brings us to the crux of the matter - standardization in sustainability reporting related to LRU remanufacturing. To fully grasp the impact of these activities on sustainability, we need to break down the remanufacturing process. This involves steps like induction, disassembly, disposal, replacement, retention, reconfiguration, modification, and reassembly. These actions collectively contribute to the remanufactured product's sustainability profile.


The Role of LRU Remanufacturing in Sustainability

In this process, typically 60-80% of the value of all materials is retained, making it an inherently eco-friendly practice. The remanufactured BOM-parent (the LRU in question) delivers outcomes that sustain its physical and/or economic life, such as improved efficiency and effectiveness, conformity to newly issued government regulations, and repurposing the original NMP's design for a new outcome.


Despite the potential for greenwashing, it is vital to acknowledge that LRU remanufacturing has long contributed to sustainable practices in various sectors. These activities have been sustainably focused and highly profitable for many decades, even if their contribution to sustainability hasn't always been recognized or properly reported.


As we move towards a future where sustainability becomes increasingly important, it's crucial that academics, NGOs, investors, and government officials recognize and appreciate the significant contributions made by B2B-OEMs and suppliers through LRU remanufacturing. To effectively assess and compare these contributions, a standardized sustainability reporting method for remanufacturing processes must be implemented. Only then can we ensure transparent and fair accountability, differentiate between genuine sustainability efforts and 'greenwashing', and help the industry continue to innovate towards a more sustainable future.


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