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Recycling strategies demonstrate different life cycle environmental performance. In order to assess this performance, a life cycle assessment may be used. In such studies, the recycling should be linked with multifunctionality and allocation. This requires it to be modelled accordingly, especially in terms of environmental burdens and credits. The paper presents a case study of open-loop recycling. A flow of mixed post-consumer multi-material waste was reprocessed into another product with a new application—a fence board made of recycled material (secondary fence board). Although many allocation-related case studies are provided in the literature, no example of a comparison between different substitution scenarios for open-loop recycling has been found. In order to fill the gap, various hypothetical market-mix-based alternatives related to the virgin production and durability of products have been examined. The goal of the study is to assess the potential environmental impact of 1 m2 of secondary fence board modelled in different substitution scenarios. The paper is the second part of a two-part study. In Part 1, life cycle assessment results were presented for a baseline scenario (1A). Part 2 focuses strongly on allocation considerations. In order to ensure a consistency between the results of Part 1 and Part 2, the entire life cycle of the fence board has been taken into account in both calculations. The case study has shown that the results may be highly sensitive to the choice of substitutes and the choice of quality attributes impacting the reference flows (in our example, the durability of products).

In the era of the circular economy, solutions aimed at increasing the circularity of materials and products are highly welcome. Eco-design and waste management strategies are crucial for ensuring circularity and resource-saving. Strategies should be driven by assessing life cycle-based environmental performance. Tools to measure this performance should take into account two recycling-oriented parameters: recycled content and recycling rate. This paper presents the results of a life cycle assessment case study for a secondary fence board (baseline scenario). The circular footprint formula has been used to allocate burdens and credits between the supplier and the user of recycled materials. The potential environmental impact and the most significant issues have been calculated, identified, and presented. A general recommendation for further environmental development of the secondary fence board is to improve the production-related energy efficiency of recycling processes and increase the recycling rate of the board (to avoid landfilling).