Top authors call on Baillie Gifford to end fossil fuel ties

A fresh campaign, endorsed by over 150 prominent authors, including renowned activist Naomi Klein, has petitioned the Edinburgh Book Festival sponsor Baillie Gifford, to sever its connections with the fossil fuel industry. In July, The Ferret, an investigative journalism outlet, brought to light that Baillie Gifford, a significant asset manager headquartered in Edinburgh, had invested up to £5 billion of client funds in companies profiting from fossil fuels. This revelation triggered a wave of protests within the literary sphere.

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Climate activist Greta Thunberg cancelled her scheduled appearance at the book festival, and more than 100 authors signed an open letter to festival organisers, demanding dissociation from Baillie Gifford if it failed to divest from the fossil fuel industry.

Presently, a newly established campaign group, Fossil Free Books (FFB), has issued a statement urging all literary festivals sponsored by Baillie Gifford to endorse the call for the asset manager to withdraw its investments from fossil fuels. This statement has also gained the support of 130 professionals within the literary industry, including notable authors like Naomi Klein, Nish Kumar, and Rebecca Solnit.

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FFB’s message is unambiguous: they are beseeching all UK literature festivals and awards that currently receive sponsorship from Baillie Gifford to join forces in compelling the firm to abandon fossil fuel investments. In a statement, they said: “To keep global warming below the critical 1.5°C – and so secure a liveable future – investment in new oil, coal, and gas projects must stop immediately.”

“Baillie Gifford currently has up to £5bn invested in the fossil fuel industry, including the Chinese National Offshore Oil Corporation (CNOOC) and Petrobras,” it goes on to say. “CNOOC is a shareholder in the East African Crude Oil Pipeline, which is already displacing people from their homes in Uganda and, if it goes ahead, will be the world’s largest heated crude oil pipeline. Petrobras is one of the top 10 companies for projected fossil fuel development and exploration this decade.”

The statement also underscores Baillie Gifford’s substantial investments in the fossil fuel sector, including holdings in companies like the Chinese National Offshore Oil Corporation (CNOOC) and Petrobras. CNOOC’s participation in the East African Crude Oil Pipeline, which is already displacing people in Uganda, has raised environmental and human rights concerns. Petrobras ranks among the top 10 companies in projected fossil fuel development and exploration this decade.

Baillie Gifford response to authors

Baillie Gifford sponsors 11 literary festivals throughout the UK and presents an annual prize for non-fiction books. The firm has previously defended its position, having reiterated that it was “not a significant fossil fuel investor.”

“Only 2% of our clients’ money is invested in companies with some business related to fossil fuels. This compares to the market average of 11%,” the firm added. “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,” it added.

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In addition, a representative from Cheltenham Festivals acknowledged the seriousness of the climate emergency and expressed their reliance on Baillie Gifford’s support for their sustainability initiatives. According to the Guardian, it said: “We welcome and encourage robust discussion of these critical issues for our communities, societies and planet.”

Authors unite against fossil fuels

Jessica Gaitán Johannesson, an author who endorsed the Fossil Free Books statement, underscored the unique relationship between the UK literary community and Baillie Gifford. According to The Ferret, she called on the firm to divest from fossil fuel companies, highlighting Baillie Gifford’s holdings in the China National Offshore Oil Company, a partner in the contentious East African Crude Oil Pipeline project with potential adverse consequences for East African communities and the climate.

Environmental groups have criticised the environmental impact of the EACOP project, while TotalEnergies, the majority owner, argues that it will stabilise oil prices during the transition to renewable energy.

Ellen Miles, an environmental campaigner and author who also supports FFB’s initiative, stressed the significance of literary festivals for workers in the industry. She emphasised the importance of these events joining the call for Baillie Gifford to divest from fossil fuel companies, ensuring that discussions about the climate crisis consider the repercussions of financing fossil fuel development.

Consequently, the mobilisation of the literary world underscores the increasing awareness of the imperative to confront climate change. It also shows the influential role that high-profile authors and literary festivals can play in promoting positive environmental change.