Scaling circularity to support more sustainable healthcare
Circularity is rapidly moving from ambition to practice across industries, as traditional “take–make–waste” models are being challenged and organizations look for smarter, more resource-efficient ways of operating.
The Circularity Gap Report 2026 shows that today’s linear models result in an estimated €25 trillion in avoidable value loss every year, almost one-third of global GDP. This highlights not only the environmental urgency but also the significant economic opportunity associated with circular approaches.
In healthcare, the impact is especially clear. More than 6 million tonnes of waste are generated annually, much of it linked to products designed for short, single-use lifecycles. Addressing this challenge requires new ways of thinking across the sector.
At Arjo, circularity is a key pillar of the sustainability agenda and one of the areas with the strongest potential to drive both environmental and business impact. Johan Östblad, Head of Sustainability at Arjo, explains:
“Circularity is a strategic priority for us, closely linked to our core business. It enables us to create value by reducing the environmental footprint from our operations and products while helping healthcare providers reach their sustainability ambitions.”
A structured approach to a complex transition
Expectations around circularity are rising. Customers are increasingly asking for clearer, more credible sustainability information across the product lifecycle, and circularity-related requirements are becoming more common in tenders and procurement processes.
“The transition to more circular operations is complex and requires close collaboration across the entire value chain, from product development and sourcing to service, operations, and commercial teams. Progress depends on strong cooperation internally, as well as deeper engagement with suppliers and partners,” Johan Östblad continues.
To accelerate this work and provide clearer direction, a Circular Transition Plan is being developed.
Three focus areas driving circularity
Arjo’s Circular Transition Plan is structured around three focus areas, each addressing specific parts of the operations and value chain.
1. Design for circularity
Design for circularity focuses on the products and how they are designed, used, and managed throughout their lifecycle. The objective is to ensure products meet customers’ sustainability requirements while reducing environmental impact in line with Arjo’s climate targets.
Key priorities include reparability, ease of disassembly and responsible end-of-life solutions. This requires considering circular aspects early in the product development process, where the greatest impact can be achieved. Designing products with a long lifespan, that can be repaired, and that are responsibly managed at the end of life, strengthens both sustainability performance and the value for healthcare.
2. Process circularity
The process circularity focus area targets how Arjo operates across its facilities and activities. Here, the emphasis is on reducing waste generation and improving packaging practices across all operations.
This is supported by initiatives to improve packaging practices, increase reuse and recycling, and optimize material use. In the UK, for example, rental operations are being assessed to identify opportunities to streamline logistics, improve handling processes, and reduce waste. These actions will support not only environmental performance but also operational efficiency and cost awareness.
3. Enhance circular solutions
Enhancing circular solutions builds on operations where circularity is already embedded. A key focus is the continued expansion and optimization of Arjo’s offerings within rental, service, and reprocessing, where products and materials are kept in use longer and utilized more efficiently.
By strengthening these business models, Arjo can further align clinical performance, financial value, and sustainability, reinforcing circularity as a core part of the business.
Together, these three focus areas provide a clear framework for accelerating Arjo’s transition towards more circular operations – supporting healthcare providers in their sustainability transformation.
References
Bolton, A (2021) From Health Sector Waste Minimisation Towards a Circular Economy
Circularity Gap Report 2026: The Circularity Gap Report 2026 (1).pdf