Greening MedTech: The Impact of Procurement-Based Demand on Sustainability

The MedTech and healthcare sectors have long been seen as leaders in innovation, consistently pushing the boundaries of what is possible in diagnosing, preventing, monitoring, and treating diseases. These advancements are also bringing an increased awareness of the impact current healthcare practices and legacy devices are having on the environment. Changing the way we deliver healthcare and design healthcare products is essential for minimising the environmental impact and creating a sustainable future for the MedTech and healthcare industries.  

The Need for Circular Economy in MedTech

Sustainability in healthcare involves integrating responsible social, economic, and environmental practices. This integration applies to the entire healthcare ecosystem, including hospitals, clinics, pharmaceutical companies, medical device manufacturers, and the global supply chain. The shift from a linear economic model (take-make-use-waste) to a circular economic model (reduce-reuse-recycle) is crucial. Circular economies keep materials in use for as long as possible, extracting maximum value and minimizing waste.

Despite the clear benefits, manufacturers may resist incorporating circularity into their products and processes due to the cost of change, regulatory uncertainty, undefined requirements, inconsistent data requirements, and lack of market demand.

The Role of Procurement-Based Demand

Procurement-based demand is initiated by an organization’s need to purchase materials and finished products through long-term contracts or tenders while meeting net zero emissions and environmental targets. Healthcare system procurers, such as the UK’s National Health System (NHS) Supply Chain, are driving demand for circular healthcare products by prioritizing sustainable procurement. This shift transforms circularity from a voluntary initiative to a hard requirement for market access.

Principles of a Circular Economy

A circular economy focuses on minimizing waste and maximizing the value of resources. It is based on three design-driven principles:

1. Eliminate Waste and Pollution: Design products, materials, and infrastructure to re-enter the economy after use.
2. Circulate Products and Materials: Maintain, reuse, refurbish, and recycle products.
3. Regenerate Nature: Improve natural environments and build biodiversity.

Applying these principles reduces the demand for raw materials and significantly lowers emissions, contributing to net zero targets.

Interventions for Circular Economy

Circular economy interventions are actions taken to transition from a linear model. These interventions apply to both the value chain and the lifecycle of a device:

• Upstream (Design & Production): Use sustainable materials, modular design, and resource-efficient processes.
• Midstream (Use Phase): Extend product life through repair, reuse, and leasing models.
• Downstream (End-of-Life Management): Implement recycling, remanufacturing, and take-back schemes.

Value Chain vs. Lifecycle Interventions

The value chain refers to business activities that add value to a product or service at each stage, from raw material extraction to final disposal or recycling. It emphasizes economic value creation, cost efficiency, and competitive advantage. In contrast, a product lifecycle focuses on environmental impacts at each stage, emphasizing sustainability, emissions, resource use, and waste.

Integrating value chain efficiency with lifecycle assessments maximizes economic and environmental benefits, driving towards a circular economy.

Procurement Requirements for Circular Economy

The NHS Evergreen Sustainable Supplier Assessment is a tool for suppliers to share sustainability information with the NHS and align with its net zero ambitions. It includes sections on emissions targets, carbon footprinting, circular economy principles, renewable energy, and more. Similarly, the Nordic Criteria for More Sustainable Packaging aims to reduce the environmental impact of packaging in healthcare products.

Conclusion

The transition to a circular economy in the MedTech industry is being driven by procurement-based demand. As healthcare systems establish sustainability requirements in their procurement processes, manufacturers must adapt by integrating circular economy principles at both the value-chain and lifecycle levels. This shift enhances resource efficiency, reduces costs over time, and ensures long-term regulatory compliance.

By aligning product design and business strategies with procurement-driven sustainability requirements, MedTech companies can secure their competitive advantage while contributing to a more sustainable healthcare ecosystem. Circularity is not a burden but a responsibility that will lead to a more resilient, cost-effective, and environmentally responsible future.