This thesis started with the discovery that in Sweden, about 70% of wool, a valuable material, is wasted in 2017. In recent years, a local value chain in Sweden has gained momentum to increase the use of Swedish wool as a circular and sustainable fibre for the textile industry in the country. This thesis aimed at suggesting a strategic approach to strengthen the Swedish wool value chain. To do so, we used the leverage points framework as a systems thinking lens to uncover system dynamics and assess what is most needed in the system through semi-structured interviews. Then, a systematic literature review was conducted to uncover interventions contributing to sustainable transformations in the global wool value chain and suggest a strategic approach for the Swedish case. The key leverage point that emerged as a result of the research is enhancing the capacity to self-organise as a system, which can happen through increasing collaboration, fostering a structure for learning and flows of information. The strategic intervention that we suggested is to establish a ‘connector’ in the system in order to facilitate underway projects as well as collaboration in a national perspective to develop and expand the use of Swedish wool.