Closing the loop for a sustainable healthcare
Jochen Schmitz
Chief Financial Officer (CFO) & Managing Board Member at Siemens Healthineers
Today’s economic activity places a significant strain on our planet, as evidenced by global warming and the decline of biodiversity. It is therefore imperative to decouple economic growth from the consumption of natural resources and to minimize waste and pollution. In recent years, circular economy has become a central solution to these challenges.
At its core, circular economy revolves around "closing the loop" – employing various strategies to slow down, refine, and ultimately close material flows. Associated is a fundamental reorientation towards minimizing material consumption, reconfiguring materials, products, and services for reduced resource intensity, and transforming what is conventionally deemed "waste" into a valuable resource.
In healthcare, the adoption of circular economy yields many advantages. Not only does it reduce the carbon footprint associated with healthcare systems but also enables healthcare providers to refine their life cycles, thereby promoting sustainability. Furthermore, a circular economy fosters increased accessibility to technology, reinforcing the commitment to efficiency, effectiveness, and innovation.
For us, at Siemens Healthineers embracing the principles of a circular economy emphasizes a strategic move towards both a low-carbon and resource-efficient economy. With our commitment to circularity, we have set ourselves ambitious goals which build on the following principles:
Keeping the key concept of "closing the loop" in mind, allow me to share five examples of how our businesses contribute to a more circular economy.
Modularity establishes the basis for maintaining components within the loop. In our context, modularity involves crafting components that are easily separable and adaptable. Our approach to modular design involves employing identical elements such as computers and power supplies across our product families, enabling straightforward disassembly and reassembly. This heightened flexibility facilitates the creation of diverse product versions, ultimately enhancing component lifespan by facilitating upgrades and updates.
Repair and reuse: Once a system is installed, spare parts keep components in the loop. In fiscal year 2023, we took back more than 480,000 used parts, and approximately half of them were repaired and/or reused. Even individual parts from an X-ray tube, such as the housings, find a second life in another piece of equipment. Rest assured: each spare part must comply with strict regulations to ensure the safety of the systems.
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We refurbish our MRI, CT, molecular imaging, mammography, mobile C-arm, X-ray, and angiography systems.?Thus, closing loops and repeatedly using resources contributes to achieving maximum eco-efficiency. More than 6,100 of our so-called ecoline devices are installed worldwide. In addition to contributing to a circular economy, refurbished systems also improve access to care by offering “as good as new” quality at a more affordable price. Our point-of-care diagnostics replace certain handheld blood gas and diabetes testing devices with refurbished devices in exchange for broken instruments.
Reusing natural resources: Integrated waste management systems can close the material-loop through material recovery. Worldwide, one in seven liters of the rare noble gas helium is used to cool MRI magnets. At Siemens Healthineers we recover helium during MRI processing for reuse (for welding, for example). We retrieved nearly 20,000 liters of liquid helium in 3 months from reclaimed systems - enough to fill 28,000 systems of one of our newest MRI platform, MAGNETOM Free.Max that only requires 0.7 liters of the noble gas.
Recovering waste heat in production to reduce our carbon footprint: ?Integrated waste management systems can close the material-loop through material recovery. Within our new High Energy Photonics (HEP) Center in Forchheim, Germany, we recover waste heat from production, using high-efficiency heat pumps. Aside from the circularization of waste heat, the remaining demand is covered by energy from renewable sources. Together with photovoltaic, we reduce CO2 emissions to almost zero. The HEP is a role model for our future construction projects.
Circular approaches go beyond environmental protection. They can help create new jobs, improve supply chain resilience, and unlock an estimated €1.8 trillion in economic growth potential per year in Europe alone. In addition, companies with higher levels of circularity experience lower default risks and higher risk-adjusted stock returns. Together with our stakeholders, we thereby contribute to the UN’s Sustainable Development Goal 12: “Responsible consumption and production”. Because after all:
Customers, investors, talents, our team – society as a whole – measure us not only by our technological breakthroughs in healthcare but also by our contributions to a sustainable economy.
That’s why we pioneer breakthroughs in healthcare. For everyone. Everywhere. Sustainably.
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We document our goals and initiatives in our sustainability report.
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7 个月For a deep dive of how we work together with our customers towards a sustainable tomorrow, check out: https://events.siemens-healthineers.com/sessions/spotlight/together-towards-a-sustainable-tomorrow
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7 个月Making sure that our economic system does not waste valuable resources is not only ecologically sensible, but is also in everyone’s economic interest. Investing in this concept within the healthcare sector is quite huge.
Right on point, Jochen! Emphasizing that investing in the circular economy is an obligation showcases the growing necessity for businesses to align with environmental, societal, and economic sustainability. This strategic approach not only meets the demands of eco-conscious consumers and investors but also ensures a competitive edge. It's a theme that was thoroughly explored at a recent G.I.L.C. gathering, highlighting sustainable practices as key to long-term success and market leadership. For those interested in how sustainability is reshaping investment and business strategies, and for the opportunity to engage in one-to-one meetings with like-minded investors, our G.I.L.C. events are a must-attend. Go to https://investmentleaders.club/registration-form/ to register.
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7 个月Jochen Schmitz - Great share - Indeed The essence of a circular economy lies in its potential to transform challenges into opportunities—for innovation, for sustainability, and for creating a healthier future for the planet, Siemens Healthineers - great job, in embracing principles like modularity, repair, reuse, and recycling.!!