The Circular Transition: Knowledge sharing & lessons Learned

The Circular Transition: Wehlers Implementation Guide

The Circular Transition: Lessons Learned

Introduction to Full Circular Economy & the benefits

By Henrik Holm, Circular Strategy, Wehlers

The journey from linear manufacturing to a Full Circular Economy is less about material switching and more about complete business model transformation. This transition requires system-level redesign, supply chain ownership, and a philosophical shift from selling products to managing resources.

At Wehlers, we have distilled our operational model into 5 crucial implementation pillars. This guide shares our learnings for professionals interested in adopting verifiable, zero-waste principles.

1. Pillar 1: The Design Imperative – Material Purity and The R.U.M. Rule

The single greatest learning in creating circular design is that a product’s future is determined by its material composition & composition today. If a piece of furniture contains mixed materials or "ugly substances" (like non-separable composites), the FULL Circle is broken before the first item is sold. Hence An Old School linear business model.

Lesson: Design for Infinite Returns

  • R.U.M. (Re.Used.Materials.) Standard: We committed to prioritizing complex post consumer waste streams, including recycled ocean plastic (fishing nets), recycled e-Waste (keyboards & kitchen appliances), and materials from recycled injection pens (PharmaBlue).
  • Engineering for FULL Circle: Our products are designed to be taken apart quickly and efficiently without specialized tools. This is a non-negotiable step. Components must be easily disassembled so that pure streams of material can be recovered, maintaining the highest possible value for their next life.
  • Audited Metrics: By focusing on verifiable, post-consumer inputs, we achieved a proven average reduction in Co₂ (supported by certified EPDs) compared to using virgin plastic. This data is the foundation of the circular business case.

2. Pillar 2: Operationalizing the FULL Circle – The Guaranteed Take-Back System

The system fails if the manufacturer does not take responsibility for the product's end-of-life. Implementing a mandatory, Guaranteed Take-Back System transforms future waste from a customer liability into a controlled resource for the producer.

Lesson: Own the Logistics, Own the Future

Stage of Implementation Operational Learning Strategic Value to the System
Stage 1: Client Off-Ramp Make the retrieval process frictionless and financially predictable for the client. Zero disposal liability is the most powerful B2B promise.
Stage 2: Reverse Logistics Centralize and finance the collection process. We arrange and cover the cost of collection to ensure the valuable resources return to our facility. Guarantees resource control and bypasses the general recycling market failures.
Stage 3: Resource Management Our facility acts as a sorting hub. Components are either refurbished for resale, or fully disassembled for feedstock. Guaranteed utility of the materials, fulfilling the full circular model.

3. Pillar 3: The Business Model Shift – From Product Sales to Asset Management

Lesson: Value Creation Through Total Cost of Ownership (TCO)

The long-term value of circularity is not just in the reduced carbon footprint; it's in eliminating future financial risk and generating verifiable assets.

  • Financial Advantage: By eliminating future disposal costs and maximizing product lifespan, the R.U.M. system can be framed as a superior long-term investment. This leads to a demonstrably Reduced Total Cost of Ownership (TCO) for the client over a 5–10 year lifecycle.
  • ESG Reporting as a Return: The KG of CO₂e saved is concrete, audited data that immediately feeds into a client's annual ESG and CSRD reporting. We provide the proof, turning a capital expense into a verifiable corporate sustainability success story.

4. Pillar 4: P&L Impact and Financial De-risking

The traditional furniture lifecycle results in a 100% write-off on the balance sheet and a future liability on the P&L. Wehlers’ model provides concrete cost avoidance and asset retention:

Lesson: Convert Capital Expense (CAPEX) Loss to Resource Asset

  • P&L Benefit: Cost Avoidance. The Guaranteed Take-Back System transforms an unpredictable future expense (waste management, logistics, landfill fees) into a predictable zero cost of disposal. This stability significantly de-risks future P&L projections.
  • Balance Sheet Impact: While traditional furniture is written down to zero, the R.U.M. model—with its guaranteed end-of-life value (the material feedstock)—allows for a more defensible view of retained asset value on the balance sheet.
  • Regulatory Future-Proofing: Our full compliance with verifiable EPDs and audited circularity metrics offers an immediate solution for navigating mandatory regulations like the EU's CSRD. This financial de-risking minimizes potential penalties and streamlines future compliance audits.

5. Pillar 5: Certifications & Proof of Concept

To move beyond greenwashing, circular claims must be externally validated and easily communicated. Certification serves as the essential trust layer for clients and investors, converting internal principles into verifiable public metrics.

Lesson: Validation is the Ultimate Differentiator

  • B Corporation (B-Corp) Certification: This global standard validates that the entire business operates with high standards of verified performance, accountability, and transparency on factors from employee benefits and supply chain practices to environmental impact.
  • 3rd Party Calculations (Quantified Impacts): We rely on independent analysis to rigorously calculate and verify the environmental benefits of using ReUsed Materials (R.U.M.), providing irrefutable data on CO₂e savings and resource displacement.
  • Product Environmental Footprint (PEF) Calculations: Utilizing the EU's standardized, multi-criteria measure for environmental performance allows us to benchmark and transparently communicate the comprehensive environmental impact of our products across their entire life cycle.

Next Step: Join the Circular Discussion

We believe that sharing these operational learnings accelerates the industry's transition. Connect with our team to schedule your Knowledge-Sharing Session and discuss the practical application of these principles in your own business strategy.

Fill in the form or contact us directly:

Email: info@wehlers.com | Phone: [+45 2567 1638]

Wehlers | The Future of Circular Procurement