Baillie Gifford has hit back at claims it is greenwashing through its sponsorship of a book festival.
On Friday (August 4), Greta Thunberg pulled out of the Edinburgh International Book Festival over its sponsorship by Baillie Gifford.
As a climate activist, Thunberg accused the company, which invests in fossil fuels, of greenwashing in its sponsorship of the cultural event.
However, Baillie Gifford has hit back at the allegation claiming it invests less in fossil fuels than other companies.
In a statement the fund manager said: "We are not a significant fossil fuel investor. Only 2 per cent of our clients’ money is invested in companies with some business related to fossil fuels. This compares to the market average of 11 per cent.
"Of those companies, some have already moved most of their business away from fossil fuels, and many are helping to drive the transition to clean energy.
"We are investing on behalf of our clients to grow their savings and retirement funds. When we invest in companies on their behalf, we do so over long time periods - typically 10 years or more - so this has naturally led us away from traditional fossil fuel firms. Currently, 5 per cent of our clients’ money is invested in companies whose sole purpose is to develop clean energy solutions."
Thunberg was due to speak at the festival this Sunday (August 13) in an event called 'It's Not Too Late to Change the World'.
The Swedish activist said: "As a climate activist I cannot attend an event which receives sponsorship from Baillie Gifford, who invest heavily in the fossil fuel industry.
"Greenwashing efforts by the fossil fuel industry, including sponsorship of cultural events, allow them to keep the social license to continue operating. I cannot and do not want to be associated with events that accept this kind of sponsorship.”
Director of the Edinburgh Film Festival, Nick Barley, defended the event's choice of sponsor but said he respected Thunberg's decision and agreed that the rate of progress in climate action was not enough.
Barley said: "The Book Festival exists to give a platform for debate and discussion around key issues affecting humanity today - including the climate emergency. As a charitable organisation, we would not be in a position to provide that platform without the long-term support of organisations such as Baillie Gifford.
"We strongly believe that Baillie Gifford are part of the solution to the climate emergency. They are early investors in progressive climate positive companies, providing funds to help them grow. While they acknowledge there is still work to do, we have seen them make rapid progress throughout our 19-year relationship"
tara.o'connor@ft.com, david.thorpe@ft.com
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