Stephan Schmidheiny
Stephan Ernst Schmidheiny | |
|---|---|
| Born | October 29, 1947 Balgach, Switzerland |
| Occupation(s) | Entrepreneur, industrial leader, philanthropist |
| Known for | CEO of Eternit; philanthropy; sustainable development advocacy; asbestos-related legal cases |
Stephan Ernst Schmidheiny (born 29 October 1947) is a Swiss billionaire entrepreneur, industrial leader, philanthropist, and has been twice convicted (in 2019 and 2023) on various counts of manslaughter connected to asbestos-related activities conducted by his family's business operations in Italy.
Early life and education
Originating from Balgach, Switzerland, Stephan Schmidheiny represents the fourth generation of a distinguished Swiss industrial dynasty. He completed his doctorate in Law at the University of Zurich in 1972.
Eternit / Asbestos Phase-Out, Legal Challenges, and Reflection
Schmidheiny launched his professional journey with Eternit in 1972 and ascended to the role of CEO of the Swiss Eternit Group by 1976 at just 29 years old. His father, Max Schmidheiny, apportioned the family business between his two sons; Stephan received control over the asbestos segment through Eternit, while his brother Thomas managed the cement division.
His official biography states that he terminated Eternit's asbestos utilization by 1986, having declared as early as 1981 the company’s plan to halt asbestos production well ahead of the European prohibition implemented in 2005. By 1984, asbestos was largely eliminated from Eternit's product range, with significant investments made toward developing alternative fiber materials.
Since 2009, Schmidheiny has been involved in numerous legal proceedings in Italy related to environmental catastrophes and charges of voluntary manslaughter arising from asbestos exposure at Eternit's manufacturing sites. In February 2012, he received a 16-year prison sentence; this was subsequently increased to 18 years by the Turin Appeals Court in June 2013 due to environmental harm. Nevertheless, some charges were dismissed in November 2014 owing to statute of limitations constraints, and he was acquitted that same year regarding allegations of negligence.
A subsequent trial known as "Eternit Bis" commenced in 2015, with the Turin court dismissing accusations in November 2016. Certain cases involving negligent homicide remain under consideration across various Italian jurisdictions.
Schmidheiny has emphasized that his tenure occurred before asbestos risks were widely recognized and prior to Italy’s ban on production enacted in 1992. He has acknowledged the personal hardships caused by these legal disputes but later expressed criticism over their conduct, especially following an Italian judge’s controversial comparison of him to Hitler.
In addition to facing litigation, Schmidheiny created compensation funds for asbestos victims in South Africa and Italy—two nations where no successor entities to Eternit exist—signaling his commitment to mitigating financial repercussions from asbestos exposure.
Separate convictions for manslaughter in 2019 and 2023
In May 2019, a Turin court sentenced Schmidheiny to four years imprisonment for involuntary manslaughter concerning two workers’ fatalities. This verdict concluded a decade-long legal confrontation involving Schmidheiny, Italian authorities, former Eternit employees, and local residents near asbestos plants. Prosecutor Gianfranco Colace characterized this decision as an initial milestone for establishing accountability for deaths caused by asbestos-related illnesses. Later, in 2023, Schmidheiny was handed a 12-year sentence on aggravated manslaughter charges connected to the deaths of 392 individuals in Casale Monferrato.
Additional Involvements
Following his departure from asbestos manufacturing and Eternit, Schmidheiny broadened his investment scope, creating a global conglomerate with stakes in sectors such as forestry, finance, consumer products, energy production, and electronic and optical technologies. He held board memberships at prominent firms including ABB Asea Brown Boveri, Nestlé, Swatch, and UBS AG.
In 1985, Schmidheiny backed Nicolas Hayek's takeover of the Swiss watch holding company Société de Microélectronique et d'Horlogerie (SMH), a move that played a crucial role in revitalizing the Swiss watch sector and ultimately led to the establishment of the Swatch Group.
By 1987, as a principal shareholder in Brown, Boveri & Cie (BBC), Schmidheiny co-directed its merger with Sweden's ASEA, resulting in the formation of ASEA Brown Boveri—now known as ABB Group—a dominant player in its industry.
That same year, he purchased two-thirds of Landis + Gyr’s shares from family owners without heirs. Confronted with underperformance, Schmidheiny undertook significant restructuring measures within the company.
Philanthropy
Beginning in the 1990s, Schmidheiny dedicated considerable effort to philanthropic initiatives, especially focusing on sustainable development. He has acted as a sustainability consultant for both the United Nations and the OECD.
During the 1980s, he established FUNDES to support small and medium enterprises throughout Latin America. Since 1982, Schmidheiny has acquired more than 120,000 hectares of forest near Concepción, Chile—a territory subject to ongoing disputes with the indigenous Mapuche community, who assert that the land was confiscated during Pinochet’s regime.
In March 2019, just prior to his conviction for involuntary manslaughter, Forbes listed Schmidheiny among the globe’s most generous philanthropists outside of the United States.
Rio Earth Summit 1992
In 1990, Schmidheiny was appointed as chief advisor on business and industry matters to the United Nations Conference on Environment and Development (UNCED), famously known as the 1992 Rio Earth Summit. He initiated a worldwide business forum dedicated to tackling environmental and development issues; this forum later evolved into the World Business Council for Sustainable Development (WBCSD), which today includes 160 leading companies. In recognition of his groundbreaking efforts to eliminate asbestos-containing construction materials, Schmidheiny was named honorary chairman.
Following the summit, he authored Change of Course: Global Business Prospects for Development and the Environment (MIT Press, 1992), which explores how corporations can embrace sustainable development principles. This work has been translated into fifteen languages. Additionally, he contributed to Financing Change: The Financial Community, Eco-efficiency, and Sustainable Development, also published by MIT Press.
Fundación Avina
During the 1990s, Stephan Schmidheiny founded Fundación Avina, an organization dedicated to promoting sustainable development across Latin America by encouraging collaboration between social innovators and business leaders. It has emerged as a leading entity in this domain.
The foundation introduced a South American microfinance system modeled after Muhammad Yunus's approach, delivering benefits to local populations. Schmidheiny’s philanthropic contributions in the region have surpassed one billion US dollars.
After launching VIVA Trust in 2003, Schmidheiny stepped down from all executive responsibilities, including his roles at GrupoNueva and Fundación Avina.
Additional Philanthropic Efforts
In 1993, Stephan Schmidheiny established the Alexander Schmidheiny Foundation to honor the memory of his late brother Alexander, utilizing the inheritance left by him.
His commitment to the arts extends to enhancing the Daros Collection in Zurich, which was originally assembled by his brother and features significant North American and European artworks from the latter part of the 20th century.
Together with his wife Victoria, Schmidheiny is engaged in the development of Les Arts Gstaad, a cultural hub located in Gstaad.
Moreover, he played a key role in founding Fundacion MarViva, an initiative that combines scientific inquiry with advocacy to safeguard marine ecosystems around the Costa Rica Thermal Dome. This foundation is active across Costa Rica, Panama, and Colombia.
Honors and Recognitions
Schmidheiny was honored with an honorary doctorate by the Instituto Centroamerica de Administración de Empresas (INCAE) in Costa Rica in 1993. Subsequent honorary degrees were conferred upon him by Yale University in 1996, Rollins College in Florida in 2001, and Andrés Bello Catholic University (UCAB) in Caracas.
In 2001, he received the prestigious Zayed International Prize for the Environment, recognizing his "Environmental Action Leading to Positive Change in Society." Later, in 2007, he was honored with a Philanthropy Award at the PODER Green Forum.
Personal Background
Between 1974 and 2002, Schmidheiny was married to Ruth Schmidheiny, who served as Administrator of Daros Latinamerica AG during their marriage. The couple has two children—a son and a daughter. Currently residing in Hurden, Switzerland, he has been married to Dr. Viktoria Schmidheiny-Werner since 2012.
As of 2023, approximately six months prior to his second manslaughter conviction, Bilanz estimated his net worth at CHF 3.75 billion.
External links
- (last updated 2017)