Yahoo Finance Greta Thunberg rebuffed over Edinburgh book festival greenwashing claims
One of the UK’s largest and oldest investment management firms has hit back at Greta Thunberg after she accused the company of greenwashing.
The young climate activist was due to appear at the Edinburgh International Book Festival this weekend, but pulled out on August 4 claiming that Baillie Gifford, a leading sponsor of the event, was heavily invested in the fossil fuel industry.
Ms Thunberg said in a statement published on the book festival’s website: “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.”
But Baillie Gifford – which has sponsored the event for 19 years and manages Scottish Mortgage Investment Trust, one of the biggest funds in the UK – rejected Ms Thunberg’s accusations, saying it is “not a significant fossil fuel investor”.
Nick Thomas, partner at the firm, said: “Only 2pc of our clients’ money is invested in companies with some business related to fossil fuels.
“This compares to the market average of 11pc. 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.”
He added that 5pc of clients’ money is invested in companies “whose sole purpose is to develop clean energy solutions”.
Ms Thunberg withdrew from the festival after an investigation by the Ferret, a Scottish investigative journalism platform, suggested that Baillie Gifford had £5bn invested in companies which profit from the oil, coal or gas sectors at the end of 2022, out of total investments worth £223bn.
This is not the first time a celebrity has backed out of an event over fossil fuel sponsorship. The departure of top names has sometimes prompted organisers to cut ties with sponsors.
In June, the British LGBT Awards dropped sponsorship deals with Shell and BP after a number of nominees and judges, including comedian Joe Lycett, dropped out because of the event’s links to fossil fuel companies.
In 2018, the singer Neil Young forced Barclaycard to withdraw from sponsoring the British Summer Time show he was set to perform in Hyde Park the following summer, after criticising the promoter for choosing a backer he accused of funding fossil fuel extraction.
In a statement on the event’s website, director of the Edinburgh International Book Festival, Nick Barley, said he respected Ms Thunberg’s decision, however “in applauding Greta for standing by her principles, we too must stand by ours.”
Mr 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.”
