Making Circularity a success: Lessons learned so far

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“Making the Dutch economy circular is an economic no-brainer.” says Thierry Aartsen, the Dutch state secretary responsible for the circular economy. Our current linear “take-make-waste” economy strains natural resources, and puts enormous pressure on the planet’s ecosystems. The good news is that there is a business approach that can change this: Circularity. We see circular business principles everywhere – though not always labelled as such. The underlying idea is simple and rooted in common sense: preserve resources, prevent waste, and create value that lasts. Easy, right? Yet, practice shows that transforming to circular is not an easy route. Transitions to circularity rarely collapse or fail because of technology or market demand, but because companies underestimate what it takes to embed circularity across a linear organisation. 
 
So the question is: how to make transformations to circularity a success? 
 
In this blog, we share our experience with you. This is an introduction, more specific cases on key success factors and common pitfalls will follow soon. We start with the core elements of leading frameworks and analyses regarding circularity, and under each element, share our insights and lessons learned so far. 
 
1. Systemic Design and Innovation  
Circularity starts at the design stage. Companies must rethink products, services, and supply chains to minimize waste and maximize reuse. Strategies include designing for product longevity, modular product design, substituting scarce or hard-to-recycle materials with renewable alternatives, and embedding digital product passports for traceability.  

In our experience, there are different starting points. Many businesses have been applying circular principles for years, often in a fragmented or ad-hoc way. Some do it consciously to secure supply chains and reduce dependence on scarce raw materials. Others see it as a route to cost savings, innovation or competitive advantage. What these efforts have in common is a focus on working smarter and more effectively with what you already have, and relying less on new inputs. This is an excellent base to start.  

2. Business Model Transformation 
Circular businesses generate new revenue streams by moving away from conventional ownership to other models like leasing, product-as-a-service, subscription, refurbishment, and take-back systems. These models improve resource efficiency.  
Another value creation opportunity lies within overlooked waste streams. Turning them into valuable resources starts by assessing existing waste streams to uncover innovation opportunities.  

We see that data and analysis can be a true tool for change. Many companies are not used to analysing their waste streams. If done, it is often in monetary terms (EUR). They rarely report absolute amounts (kg/tons) or break them down by material. When they do, the reports often reveal actionable business insights. Some companies discover value only after launching take-back services (with the intention of creating loyalty). So here is our advice: dream big, act step-by-step.  

3. Collaboration and Ecosystem Engagement 
No company can achieve circularity alone. Partnerships across industries, suppliers, and even competitors enable resource sharing, co-innovation, and shared logistics. Industrial symbiosis (e.g. turning waste from one sector into input for another) reduces costs and risks while unlocking new markets.

Here (top) management plays a vital role. Companies do not know upfront which partners they need and how to play this new game. A key driver to success is to build personal relationships with potential partners early in the process. For instance, by organising a stakeholder engagement activity to brainstorm about minimizing waste. Or by showcasing pilot results and inviting technical experts of key players in the value chain to discuss pitfalls and dilemma’s. So do not wait, start developing a network! 

4. Metrics, Measurement, and Integration 
To scale circular initiatives effectively, companies must track performance and integrate circular KPIs into their reporting. Metrics like recycled content, end-of-life collection rates, and product longevity not only demonstrate compliance but also inform strategic decisions and attract investors looking for resilient, future-proof business models.

No company has complete, high-quality data on every aspect of circularity. At some point, decisions have to be made based on what is available, like with any innovation. In our experience, companies that successfully implement circular business models or circular manufacturing often reach a point where they simply move forward, even if data is incomplete. They make informed assumptions, take calculated risks, move step by step and adjust along the way. Acting under (some) uncertainty allows them to generate practical insights, test solutions in real-world conditions, and build momentum—steps that would be impossible if they waited for perfect information. 

5. Strategic Alignment and Leadership Commitment 
Circularity requires more than operational tweaks—it demands cross-functional alignment, organizational commitment and dedicated leadership. Clear governance, incentives, and investment in systems for tracking, reverse logistics, and supplier engagement are essential to turn ambition into measurable outcomes.

Circularity touches core operations like supply chain management, procurement decisions, value propositions, risk management, strategic partnerships, etc. That’s why it cannot be treated as a standalone topic reserved for sustainability or circularity professionals. While their role in creating awareness and guidance is crucial, in our experience true impact happens when business managers take ownership. Our advice: build a viable business case and link circularity to the purpose of your business. In most cases circularity brings attractive surprises to your business and earning model.