Founder

by Peter Fuchs, July 2004 Towards a Virtuous Cycle for Sustainable Development For the last 15 years, an important part of Stephan Schmidheiny’s resources and time has been devoted to working with leaders of civil society and business to promote sustainable development, and to build links of trust among them. Both his activities, channeled through the Fundación AVINA, and his business actions, organized in GrupoNueva, are concentrated in Latin America. GrupoNueva is a conglomerate of companies made up of two business divisions operating in 17 countries and employing 16,000 people. The two divisions, Amanco and Masisa, produce systems and infrastructure for drinking water, residential water, waste water, and irrigation; light construction systems for housing; pine forest plantations and wood products. The GrupoNueva companies are committed to the development of Latin America, to corporate social responsibility and eco-efficiency, and to participating in the economic and social development of the societies where they work. Stephan Schmidheiny also has ties to the arts that go far beyond those of a simple collector. His Daros Collection, which includes paintings and sculptures by artists like Giacometti, Johns, Mondrian, Pollock, Rothko, Twombly and Warhol, is on exhibition in Zurich. Daros publishes a wide variety of papers and introduces thematic essays and monographs that offer different views of different works, facilitating its analysis and study by historians, researchers, sociologists and people interested in Art. Working constantly in encouraging education and promoting culture, Stephan Schmidheiny has established Daros-Latinoamerica, a collection that is continually growing and includes works from contemporary regional artists; and Daros Art Education, a program directed at young people, which explores innovative ways to further art knowledge and comprehension. In recognition of his leadership and contributions to sustainable development, Stephan Schmidheiny has received a number of awards and distinctions, which include the honorary doctorates awarded by the Instituto Centroamericano de Administración de Empresas (INCAE) in 1993; Yale University in 1996; Rollins College and the Universidad Católica Andres Bello (UCAB), both in 2001. Stephan Schmidheiny was born in Sankt Gallen, Switzerland, in 1947. After graduating from Law School in his homeland, he started his career as an entrepreneur at the age of 25. Only four years later, he was already chairman of the family business, a construction materials company. Years later he started to diversify his investments, increasing his interest and activity in forestry and forestry related industries, financial systems and the field of electronics and optical equipment. He has also been a board member of companies such as ABB, Nestlé, Swatch and UBS. Before the end of the 80’s, he founded FUNDES, a supportive organization for small and medium-sized companies in many countries in Latin America. In 1990 he was appointed Chief Counselor of the Commerce and Industry Secretary General in the United Nations Environmental and Development Conference (UNCED), also known as the Earth Summit, which took place in Rio de Janeiro in 1992. With his mission in mind, Schmidheiny created a world forum where business leaders could get together and discuss issues involving a healthy balance between environmental protection and economical development. This forum would later become The World Business Council for Sustainable Development (WBCSD) a coalition that today brings together the 180 most important global companies, and of which Stephan Schmidheiny was appointed the Honorary chairman. The WBSCS introduced concepts such as eco-efficiency and developed a business vision for sustainable development. In 1992, Mr. Schmidheiny and WBCSD published a book entitled Changing Course: A Global Business Perspective on Development and the Environment (Cambiando el Rumbo: una perspectiva global del empresariado para el desarrollo y el medio ambiente, Fondo de Cultura Económica, México, 1992), which was translated into 15 languages. In 1996, he published Financing Change: Eco-efficiency, Sustainable Development and the Financial Community (La Comunidad Financiera y el Desarrollo Sostenible, Editorial Atlántida, Buenos Aires, México, 1997). And, in 2002, at the time of the World Summit on Sustainable Development, he published Walking the Talk: the Business Case for Sustainable Development (Cumpliendo lo Prometido: Logros Empresariales del Desarrollo Sostenible) together with two other business leaders. In order to perpetuate both his entrepreneurial and philanthropic legacy in Latin America, on October 9, 2003, Stephan Schmidheiny donated all his GrupoNueva and other stock to the VIVA Trust. The GrupoNueva stock was worth roughly US$800 million, and the rest brought the total gift to over US$ 1billion. The transfer of GrupoNueva’s assets to VIVA Trust was another step in his ongoing effort to forge new alliances between the entrepreneurial world and civil society in order to make development more sustainable. VIVA is, on one hand, the owner of GrupoNueva and, on the other, the principal financial resource of the AVINA foundation. VIVA as owner and funder guides the two organizations in their strategic orientation. Moreover, it supervises performance and efficiency. GrupoNueva defines its strategy in Latin America and supports that strategy by meeting its profitability, growth, and efficiency goals, while fully assuming its social and environmental responsibilities. AVINA, for its part, is expected to contribute to the region’s social development and sustainability in a creative and efficient way. Thus GrupoNueva generates the resources that are then reinvested, through VIVA and AVINA, in the societies in which GrupoNueva operates, or in other locations, while GrupoNueva and AVINA continue as independent organizations. This new model is set to become a virtuous cycle that will strengthen society’s sustainable development while at the same time encouraging successful and socially responsible enterprises and civil organizations, and helping to create a more extensive and stable market for the entrepreneurial group. Stephan Schmidheiny is devoted to moving forward with this innovative process, acting as a guide and source of inspiration for those responsible for VIVA, GrupoNueva, and AVINA. More information: http://www.stephanschmidheiny.net/