Book festival activists are making absurd demands over

Insistence on investment purity misses the point and will only lead to a decline in arts sponsorship

In a ranking of climate villains in the fund management industry, Baillie Gifford would surely come a long way down most people’s list. The Edinburgh-based firm preaches long-termism and its specialism is backing technology companies, especially those with kit to accelerate the transition to cleaner energy and transport. It was early into Tesla on the thesis that polluting internal combustion engines are on the way out and Elon Musk had a winning electric design. Another high-profile bet was Northvolt, the Swedish pacesetter in batteries that is now the net zero envy of the rest of Europe.

Few portfolios in the mainstream asset management world are entirely free of fossil fuel assets but Baillie Gifford’s are definitely at the less oily end. As the firm has pointed out repeatedly in recent weeks, only 1% of the £225bn of the assets it manages is invested directly in fossil fuel companies, and the figure is still only 2% if one includes stocks such as supermarkets that sell petrol. That’s versus an industry average of 11%.