Edinburgh Festival Fringe chiefs warn arts sector is at risk of ‘imploding’ if plug is pulled on sponsors like Baillie Gifford

Baillie Gifford funds free ticket scheme as part of its sponsorship of Edinburgh’s festivals

Organisers of the Edinburgh Festival Fringe have warned that arts organisations cannot afford to take “extreme decisions” over corporate sponsors in the wake of criticism over Baillie Gifford’s backing of cultural events.

They claimed there is a risk of the entire sector “imploding” if the plug is suddenly pulled on sponsors and suggested the company had been unfairly maligned over its environmental record.

Baillie Gifford, which helps pay for the distribution of thousands of free Fringe tickets to charities, has been accused of “greenwashing” events by climate activists. But the chair and chief executive of the Fringe Society have mounted a robust defence of the Edinburgh-based firm, describing it as a “progressive partner”.

The cast of A Comedy of Operas get into character ahead of their Edinburgh Festival Fringe show at the Pleasance at EICC. Picture: Jane Barlow/PA Wire

Greta Thunberg pulled the plug on an appearance at the book festival after details of its links with the oil and gas industry were revealed. More than 100 authors have since threatened to boycott the festival if it keeps Baillie Gifford on board.

Speaking at the Fringe Society AGM, chair Benny Higgins said: “For me, ethical standards matter. And we take them very, very seriously. But there needs to be a sure-footed approach to making sound judgements.

“The sector cannot afford to take extreme decisions when assessing corporate or private financial support. It is a very, very difficult landscape for the arts at the moment. The level of jeopardy is as bad as it’s been for a very long time and it’s not set to get much better anytime soon.

"When you make judgements, you have to look at the facts. If you look at the performance and direction of travel of Baillie Gifford in terms of how it runs its own business, its performance in terms of its investments in fossil fuels is lower than its contemporaries and is going down, and its investment in renewable energy has been going up. That’s a very clear direction of travel.

"And they’ve been unbelievably supportive of the cultural sector. I disagree with Greta Thunberg. You’ve got to draw a line somewhere. I think where the line was drawn was the wrong place.

"I’m not saying that ethics don’t matter. A number of people have expressed a judgement. I think our position is the one I hear most expressed.

“I think there is a much broader church who are understanding about where people have been and are going. We’ve got to be sure-footed in how you make these judgements or, to be blunt, the entire culture sector could implode. If there is no money, then there is no culture sector.”

Ms McCarthy said: “In an environment where there’s been a 30 per cent real-terms cut in arts funding in Scotland over the last decade and the cost of everything has escalated, it’s really important to have corporate partners that will step into that space.

“That’s not to say there’s not an ongoing conversation to be had. All of the festivals are on a journey towards becoming carbon neutral. None of us are there yet.

"Why would we judge others when they’ve got a pathway and are on a journey, as are we? We’ve got to make that journey together. I don’t think any of us in this landscape are not acutely aware of our responsibilities in terms of climate action.

“I respect Greta Thunberg’s personal choice. But we've also got to make a judgement as people responsible for an event of this scale.”