Partnerships: a non-negotiable for driving circular economy in Germany

It almost began with the need to get rid of waste. As the country’s industrial output and domestic consumption increased, Germany was facing a landfill crisis in the 1970s. Public pressure and strong legislative support made the country one of the first in the world to hold the producers responsible for the disposal of their own waste.
In the backdrop of this environmental consciousness, Berlin was witnessing the conception of one of its first circular economy based business models. In 1998, Vanguard was founded as a remanufacturing company, with a simple foresight: making healthcare more sustainable by bringing single use, complex and expensive medical devices back into the value chain.



Stronger partnerships in line with UN SDG 17
Over the last almost three decades, Vanguard has evolved into one of Europe's leading medical device remanufacturers. <<One of the challenges we continue to face, however>>, says Joshua Okojie, the ESG Manager and Assistant to the Board at Vanguard AG, <<is the perception of competition, particularly among Original Equipment Manufacturers (OEMs) and other industry players who may view remanufacturers as competitors rather than potential partners. This misconception can create unnecessary barriers to collaboration, despite the opportunities for both sides to contribute to a more circular healthcare industry. To accelerate circularity, we need to move beyond this perceived competition and foster stronger partnerships across the industry. This aligns with UN Sustainable Development Goal 17, which emphasises the importance of partnerships in achieving sustainable development>>.

Vanguard’s experience is not unique. <<The whole circular economy landscape is very fragmented. There are so many resources, information, consulting for companies regarding circular measures and so on. But it’s quite difficult for interested companies to find those resources>>, explains Felix von Amelunxen, Research Associate at the Department of Sustainable Corporate Development at TU Berlin, led by Prof. Dr.-Ing. Holger Kohl.
Vanguard is one of the seven Berlin-based companies featured as a “good practice” business model on the Berlin senate-funded Circular Economy Hub Berlin (CEB) – a project to accelerate the city’s circular economy by compiling knowledge, resources and successful models available in the city.

According to the 2025 innovation indicator report, Germany ranks number one in the circular economy. Von Amelunxen notes that the reasons are quite a mix of historical, political and industrial background that the country has set up over the last few decades, but the most important of all is to bring this fragmented knowledge together, and create partnerships linking the people, government, research institutes and industrial players. 

Managing a dual world of abundance and scarcity
We live in a world of excess information, and that exactly, <<was one of the reasons to start Circular Economy Hub Berlin>>, says von Amelunxen, who is one of the contributors to the project. <<A lot of times, when people talk about the circular economy they mean recycling>>, adds von Amelunxen. <<But before we even think about recycling, it means preventing the production of waste by designing products meant to be repaired, refurbished, reused. This would put off the recycling for as long as possible>>.

CEB analysed various firms in Berlin, and categorised how they were following the ten R strategies implementing circular practices (the framework to categorise circular economy, to minimise raw material consumption, eliminate waste, and keep products and materials in use for as long as possible). <<Turns out it's not super easy to find those examples>>, comments von Amelunxen with amusement. Eventually, they listed seven good practice examples running in Berlin. These firms belong to diverse sectors from e-mobility, furniture, automotive, plastics, medical, construction and household electronics, and serves as a resource to understand what kind of model has worked in the city.

Business models like Vanguard establish that profits do not have to be sacrificed while considering sustainability, and introducing circularity in a sensitive sector like healthcare depends not only on technical processes, but also on a deep understanding of regulatory frameworks, quality assurance, and standardised procedures.
Moreover, in a context of global tensions and supply chain disruptions, the circular economy is not only important to become more sustainable, but also more resilient and independent, as highlighted von Amelunxen. It is the hub’s objective to raise awareness not only for Berlin-based SMEs but also for consumers to understand what circular economy is about.
 

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For business models such as Vanguard’s, meeting technical, regulatory and quality requirements is fundamental and non-negotiable. However, beyond these requirements, another significant challenge, points Okojie, <<is the lack of public awareness and understanding of medical device remanufacturing. There is still a perception among some patients that remanufactured medical devices may be less safe than newly manufactured products. This misconception can hinder wider acceptance and adoption of circular healthcare solutions. Education and awareness are therefore essential to building trust and encouraging circularity>>.

All-round support is imperative
Even though many of the EU countries are guided by the same EU Circular Economy Action Plan (part of the European Green Deal), it is up to the country how things are taken ahead from there. Germany has its own National Circular Economy Strategy and the Circular Economy Act (Kreislaufwirtschaftsgesetz – KrWG) which give the country a framework on how to interact with waste. But even within Germany, different regions have their own targets and vision for development.
Cities like Munich and Cologne run their own localised circular economy projects, but being Berlin less industrialised than southern Germany, the capital remains unique in its implementation and focus. Its main objective is not only to help local small and medium-sized enterprises transition into resource-efficient, circular business practices, but also to accelerate regional climate neutrality and strengthen technology transfer utilising its vast network of research institutions, industrial diversity and vibrant innovative ecosystem.

Apart from the Circular Economy Hub, the Berlin senate runs many other projects under its Competence Center for Climate, Energy and Circular Economy (KEK) program, and offers state support to strengthen collaboration between research and market to fight the contemporary challenges. One example is the Reallabor B(e) Ware, which repurposes local secondary waste into structural construction materials. Another is the A-B-Circular project, which provides local fashion and architecture businesses with free digital tools for sustainable design, and others.
 

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<<Ultimately, advancing circularity also depends on how well the public understands and embraces the concept>>, emphasises Okojie. <<It is important to strengthen awareness and demand for circular products at the consumer level where feasible. We have seen this in sectors such as packaging, where growing consumer demand for sustainable alternatives has encouraged companies to rethink their products and business models. A similar shift in public awareness and expectations can help accelerate the transition towards circularity in other industries, including healthcare.>>
Article written by Monika Mondal


This blog is a joint project by Ecomondo and Renewable Matter


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Photo by Willians Huerta