Hello Tilda,
When modelling with a cut-off approach, you get very little benefit from open-loop recycling. As far as im aware, it is not allowed to include displaced material from recycling your product at EoL, as that will be double counting with cut-off system boundary.
However, it is of course still possible to model this, to show the systematic benefits. (Usually consequential is used for this).
To model this in cut-off i recommend an EoL process that includes the collection, cleaning, shredding, and re extrusion into granulate. Then the displaced product is granular PP, with a degree of recycled plastic, determined by the market within the geographical scope you are assessing.
The competing product would have an EoL process that includes collection, and landfilling.
If you only investigate CO2, be aware that landfilling is very low intensity.
Good luck with your modelling.