Baillie Gifford prepares to hit back against critics in Book Festival 'greenwashing' row
Baillie Gifford prepares to hit back against critics in Book Festival 'greenwashing' row
Plus : First Minister's inspirational grandmother running south-side store; reasons for Legal firms merging; and Wayne Rooney’s favourite bar hits town.
BAILLIE GIFFORD SET TO DELIVER COMPREHENSIVE DEFENCE OF ITS GREEN CREDENTIALS
Edinburgh-based fund manager and global investor Baillie Gifford is expected this week to make a stout defence of its green credentials, its commitment to fighting climate change, and its reasons for supporting the Edinburgh International Book Festival.
The Inquirer has learned that multiple discussions at a senior level have raised serious internal concerns about the reputational damage done to the company by the boycott of over 100 writers during the book festival and after environmental campaigner Greta Thunberg pulled out of the event. The adverse publicity has resulted in a flurry of inquiries from international investors.
A statement is expect which will explain the company’s support for low-carbon initiatives, including its pioneering work in supporting Tesla electric cars and other low-carbon technologies, such as Zoom. It also expected that an invitation will be made to the writers who signed the boycott to come and hear more about the organisation’s investment strategy.
The Inquirer understand that internal discussions have been about whether Baillie Gifford should withdraw its considerable financial support from supporting numerous book festival and publishing industry initiatives, including the Baillie Gifford non-fiction prize. However, the statement is expected to re-iterate its support for ‘genuine debate and informed discussion’ which it says is the hallmark of book festivals.
THE ACCUSATION: The row kicked off when climate activist Greta Thunberg pulled out of her planned 13th August appearance at the Book Festival a few days beforehand. She accused Baillie Gifford of “investing heavily in the fossil fuel industry” and added: "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."
THE RESPONSE: Baillie Gifford has previously highlighted its move away from traditional fossil fuel firms as it pursues long-term investments, typically of 10 years or more, on behalf of its clients. In an earlier statement, it stated: "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.”
BACKING INNOVATION: Baillie Gifford has said 5% of its clients’ money is invested in companies “whose sole purpose is to develop clean energy solutions”. It supported Tesla when many major global investors were dismissive of electric vehicles. Tesla is now the world’s largest seller of electric vehicles, selling 22% of global sales, while Chinese maker BYD is second, [its BYD Yuan Plus (or Atto 3) was its best-selling model] and Volkswagen third with only 7%. Tesla sales soared by 83% year on year during the second quarter of 2023. Tesla Model Y accounted for 64% of Tesla’s global sales, and retained its title as the ‘best-selling’ passenger car model globally.
AUTHORS’ PROTEST: On 12th August, the opening evening, author and fellow climate activist Mikaela Loach, led a walk-out. More than 100 authors, including Zadie Smith, supported a threat to boycott the event next year unless sponsor Baillie Gifford divests up to £5bn of investments in fossil fuels or the festival drops its sponsorship.
THE BOOK FEST SAID: In his response the protesting writers, outgoing Book Festival Director Nick Barley asked for time to consider their concerns and shared the reasons behind the decision to work with Baillie Gifford as sponsors. “Like all arts organisations in the UK, we wouldn’t have enough funds to operate without private sponsorship. We looked very closely at the work of Baillie Gifford and it seems to us that they are in fact investing in companies that are seeking to resolve the crisis,” he said.
The statement is expected before climate campaigners take to the streets in Edinburgh and elsewhere next Saturday to protest at the lack of UK and Scottish government action against fossil fuel development, particularly in the North Sea.
CLIMATE MARCH: Climate protesters are meanwhile stepping up their action in the Capital. A mass protest against the planned Rosebank oilfield near Shetland is to be staged in the city centre next Saturday. The march will coincide with similar demonstrations against fossil fuels around the world including one in New York. The Edinburgh event has been organised by a coalition of groups, including the Edinburgh Climate Coalition, Friends of the Earth Scotland, Fridays for Future, Extinction Rebellion and Greenpeace Edinburgh.
THE FIRST MINISTER’S INSPIRATION
Kishwar Yousaf is one of the hardest working shop keepers in the city. She has run her premises in Mayfield Road, Edinburgh, on the south-side of the city for nearly 35 years. She began running the Post Office there before it closed, and still takes an interest in the progress of the families of her regular customers in her mini market.
First Minister Humza Yousaf introduced his Programme for Government Statement for 2023 last week by talking proudly about his paternal grandfather, Muhammad Yousaf, who arrived from Pakistan and settled in Pollokshields. Five years after his wife died, at the age of 33, he remarried but was left with five children, including Humza Yousaf’s father. Humza’s grandfather went on to become a successful small business owner.
“Although he has now passed away his wife, my step-gran, still to this day works in the convenience store in Mayfield [Road, not Mayfield Dalkeith], and she tells me Daniel Johnson is one to pop in on occasion,” he said.
FAMILY INSPIRATION: Mr Yousaf said his grandfather’s example was why he spoke so powerfully about entrepreneurial spirit and the taxes that he paid as his contribution to society. “There is no doubt in my mind that economic growth goes hand-in-hand with tackling poverty, as it did for my grandfather all those decades ago.”
Kishwar prefers to stay out of the limelight as she sticks to running her store. “I’m very proud of my grandson and his achievements. We’ve all worked very hard for all of customers here and we’re a big part of the local community. I started out working in Motherwell in 1974 and I’ve been working for nearly 50 years,” she told Edinburgh Inquirer.
STILL WORK TO DO: Among Humza Yousaf’s initiatives, he spoke of a Housing Bill to introduce long-term rent controls and new tenant rights to tackle homelessness. He also talked about his willingness to explore the Hunter Foundation’s recommendation on tax incentives to support emerging enterprises. He also wants to build on the work of the New Deal for Business Group, and develop a Hydrogen Action plan.
BUSINESS DOUBTS: The Fraser of Allander Institute’s Scottish Business Monitor Report highlighted that the majority of Scottish businesses feel the Scottish government doesn’t understand the environment in which they operate. Just 9% agreed that the Scottish government understand the business environment in Scotland, compared to 64% who disagreed, and only 8% of businesses felt the Scottish government engaged effectively with their sector.
Alex Tait, regional managing partner for RSM Scotland, said: ‘While our latest UK-wide MMBI [Middle Market Business index] data is positive, the recent Scottish Business Monitor Report suggests businesses in Scotland are concerned about a lack of understanding of their needs. It demonstrates that they still face a challenging time, especially in leisure and hospitality, which are key features of the Scottish business landscape.
“It will be interesting to see how much the Edinburgh International Festival and Fringe, and the UCL Cycling championships in Glasgow have boosted the Scottish economy, but clearly there is a way to go in building morale among businesses in Scotland.”
YOUR EDINBURGH BRIEFING
CRUMBLING CONCRETE: Installing temporary classrooms and holding online assemblies are among a number of steps taken at schools in Edinburgh to ensure that none have to close due to problems with reinforced autoclaved aerated concrete (RAAC). The city council started carrying out checks in April, using independent structural engineers, and discovered issues at nine schools. Among those affected Cramond and Trinity primaries have temporary classrooms on site; Currie High is staging online assemblies and some gym classes outdoors; the gym and dining hall at Fox Covert/St Andrew’s RC Primary are expected to reopen after remedial work while the kitchens remain closed; the kitchens are also shut at Pentlands Primary; the top floor of Lorne Primary is closed for assessment.
MORE RAAC ISSUES: Edinburgh University has restricted access to parts of eight buildings as a precaution with the Appleton Tower, the College of Art’s Hunter Building, the Institute of Genetics and Cancer at the Western General and a number at the King’s Buildings affected. Uni buildings affected. In East Lothian, the dining hall at Ross High School has been closed, following the earlier closure of parts of Preston Lodge High School, in Prestonpans, and the Brunton Theatre in Musselburgh.
MOVIE STAR: Edinburgh film producer Kenneth Petrie is keeping his fingers crossed. One of Scotland’s emerging movie talents, his latest film Black Dog has been selected by the BFI London Festival. The film follows the fortunes of two teenage boys from different backgrounds in London as they embark on a road trip to Scotland. It is one of the contenders for the “First Feature Competition”, competing for the Sutherland Award, “which recognises the most original and imaginative directorial debut” with director George Jacques in the running for the gong. Best of luck to all.
SCHOOL STRIKES: Schools across Edinburgh and Fife are expected to close in just over two weeks’ time as thousands of cleaners, janitors, admin and other relatively low-paid, non-teaching staff stage a walk-out in a dispute over pay. The days of action are planned for Tuesday, 26 September to Thursday, 28 September. Members of the GMB, Unison and Unite unions have voted to reject an average pay increase of 5.5%. None of the unions have a mandate to strike in any of the three other three Lothians local authority areas.
AT THE COLLEGE TOO: Ongoing strike action by college lecturers is due to disrupt teaching at all Edinburgh College campuses tomorrow and on Wednesday and Thursday. Lecturers and support staff are taking industrial action in a dispute over pay and conditions.
…AND THE UNIVERSITY: A marking boycott by university lecturers has been called off after nearly five months, but only to be replaced by strike action. Members of the University and College Union will stage a five-day walk-out starting on 25 September at Edinburgh, Edinburgh Napier and St Andrews Universities, as well as others across the UK, in a protracted dispute over pay and working conditions.
SPY ARREST: A Westminster parliamentary researcher has been arrested in Edinburgh under the Official Secrets Act amid allegations that he spied for China. Scotland Yard has confirmed that the man, in his 20s, was detained in the capital on March 13. He is a British citizen who worked with MPs on international policy, including relations with Beijing, for several years, according to a report in The Sunday Times. He is said to have worked with senior Conservative MPs, including security minister Tom Tugendhat and foreign affairs committee chairwoman Alicia Kearns.
NOT-SO-LOW TRAFFIC: Traffic has increased, rather than fallen, on nine out of 15 streets included in Corstorphine’s Low Traffic Neighbourhood in the first counts since new restrictions were introduced. Traffic outside the local primary has dropped slightly. The measures, including speed bumps and bus gates, are designed to improve health and road safety by turning residential streets into places that cars can access but not drive through. Some residents have called for the measures to be scrapped, but the city’s transport leader Councillor Scott Arthur has said settled traffic patterns and data on air quality, bike travel and traffic outside schools is needed before taking decisions.
MINING HEAT: Old coal mines are to be used to provide a low carbon heating source for thousands of homes in Midlothian. Heat will be drawn from water in the mines in the joint venture between the council and energy firm Vattenfall. Initially providing heat for 3,000 homes at the new Shawfair development, plans are in place to extend it to 30,000 homes including in south Edinburgh and East Lothian.
NEW HORIZON: The President of the Royal Society of Edinburgh, Scotland’s national academy, has welcomed the last-minute deal agreed by Prime Minister Rishi Sunak for UK universities to rejoin the vital Horizons Europe research funding programme. Sir John Ball was unimpressed, however, by the handling of the affair. “The only issue is that it took far too long to get over the line. Delays and uncertainty like this do nothing to help institutions in their work,” he said. The last funding round - Horizon 2020 - had invested more than €850m in research at Scottish institutions.
CANCER RESEARCH: Scientists at Edinburgh University and the Zhejiang University School of Medicine in China have identified an “alarming” 79% rise in cancer cases among younger people across the world since 1990. Obesity and alcohol consumption are singled out as two of the causes of the increase in cases in the under-50s. The researchers point out that the trend has stabilised in the UK in more recent years. Earlier this month, the Inquirer reported on the launch of the charity GI Cancer Care to raise awareness of the disproportionately high number of bowel cancer cases among young people.
DALRY STATION: The original Dalry Road Station platform has been uncovered during excavation work to build a new walking and cycling route from Roseburn to the Union Canal. The £12.5m scheme will create a green and active travel corridor which will bringing disused areas back into use. The original station closed in 1962.
GOLF’S HISTORIC LINKS: The World Short Hole Golf Pair Championship, at the Bruntsfield Links, enjoyed the glorious September sunshine. The event, established in 2001 and played over 27 holes, is a fun charity day for the city’s hospitality trade. The event benefited several good causes including PTSD, St Catherine’s Homeless Project and Euan’s Guide. Several well-kent business figures found the longish grass, bumpy greens and avoiding the dog mess hazards all part of the ambience.
THE BUSINESS
WHAT’S DRIVING LAW FIRM MERGERS? Increasing geographical reach, more arduous regulatory and legal training regimes, and the arrival of Artificial Intelligence (AI) which create draft contracts in seconds, are all reasons why law firms are looking to merge.
Last week Morton Fraser and MacRoberts announced its merged to create a new, top-tier independent firm in Scotland. Morton Fraser MacRoberts LLP – will double in size and scale becoming part of a new tier – the ‘big four’ – of independent firms in Scotland. The new firm will challenge Brodies LLP, Shepherd + Wedderburn LLP, and Burness Paull as a larger force in Scotland. It will be 30% larger by turnover than its nearest rival with combined revenues of £46m and over 250 solicitors.
Chris Harte becomes CEO with Neil Kennedy, Chief Operating Officer. Mr Harte said: “The time has come for a new style of law firm within Scotland’s top tier.” He said the firms had complementary values. “We are both known for our user-friendly, people-centred approach and those qualities will continue to drive our thinking for the future.” Neil Kennedy added: “Joining our collective talents and resources will help us to accelerate our growth, offering greater strength in depth and more wide-ranging services to clients.”
Meanwhile, Irwin Mitchell and Wright, Johnston & Mackenzie have merged. Irwin Mitchell Scotland operates out of Glasgow in banking and finance and complex personal injury work, while Wright, Johnston & Mackenzie which specialises in corporate, private client and property are well known across Edinburgh.
What is driving law firm mergers? There are multiple factors. There is a need to increase geographical reach – larger Scottish firms wants to have a presence in more countries or jurisdictions. There is increased sector presence as firms wants to diversify practice areas to cover new and emerging industry sectors such as technology and renewables. Firms are also responding to requests from clients to provide services in locations or practice areas that it doesn’t already cover.
There are increasing financial pressures and some firms have joined forces to mitigate against a precarious financial position. Increasing layers of regulation and mounting legal costs can also enhance the prospects of merger. Primarily, as in the case of Morton Fraser MacRoberts LLP, it is about improving their market position, strengthening its expertise by joining with another.
Despite merger activity remaining below pre-pandemic levels, deals are picking up pace with UK law firm mergers reportedly rising from 99 in 2021 to 122 in 2022, according to accountancy firm Hazlewoods.
“Expansion minded law firms are feeling more confident about acquisitions of firms with very specific expertise or those firms that have been struggling with their profitability”, says Ian Johnson, an associate partner at Hazlewoods.
Tony Williams, principal at Jomati Consultants and former managing partner at magic circle law firm Clifford Chance, said that these mergers between law firms “are very difficult to achieve in what is a people business”. He said lawyers “often over-emphasise the benefits of the status quo and are resistant to change so any opportunity needs to be exceptionally compelling to achieve traction”.
However, he says there are specific benefits for clients. “Provided the merger has been implemented carefully, there are clear benefits for clients – in fact, the merger will often be driven by the needs of those very same clients who want their lawyers to be able to advise on the legal rights and obligations in other jurisdictions or cross-sector.”
In May 2022, Aberdein Considine merged with Edinburgh law firm Russel+Aitken Edinburgh LLP. Aberdein Considine is now one of the top five Scottish-based law firms in Edinburgh.
TARDIS TRADE: Ever wanted to own a piece of Edinburgh history or the ultimate Dr Who fan accessory? The original 1930s police box on the corner of Brandon Terrace and Howard Street in Canonmills, close to the Botanics, is up for sale. The Inquirer recalls meeting a previous operator, a florist called CornerCopia, who found it hard to compete with flowers being sold at the local BP garage. Auction House Scotland is selling the box and inviting opening bids of £22,000. That seems pretty pricey considering its position and history.
BRAND NEW TO SCOTLAND: Womenswear brand ME + EM is opening its first biggest store - and first Scottish location - in Edinburgh. The 3000 sq ft shop at 43 George Street houses a range of womenswear, footwear and accessories. In store personal styling will be available, along with free online returns. The company has seven UK stores, concessions in both Harrods and Selfridges, and plans to open two stores in New York this winter as part of its international expansion.
THAT’S ENTERTAINMENT
SLOW HORSES: Fans of the hit Apple TV thriller Slow Horses starring Gary Oldham can hear from the creator of Jackson Lamb and Slough House in a special event staged by Toppings booksellers. (By the way, isn’t the theme tune to the TV series brilliant? Who says the Rolling Stones made all their best music in the sixties?) Newcastle-born Mick Heron will be talking about his latest standalone thriller The Secret Hours. Mick Heron, the Greenside Church, Royal Terrace, Wednesday, 7.30pm.
DANCING HORSES: Ian McCulloch’s indie survivors - whose hits include Bring on the Dancing Horses - are joined by The Royal Liverpool Philharmonic Orchestra for what promises to be a memorable night. Together they will perform the Bunnymen’s classic album Ocean Rain in full. Echo & the Bunnymen, Usher Hall, 14 September.
MATTHEW BOURNE’s Romeo + Juliet comes to the Festival Theatre from Tuesday 19th until Saturday 23rd September. Shakespeare’s timeless classic offers raw passion and youthful vitality. If you can’t get along, Sir Matthew’s Swan Lake, multi-award winning interpretation of Tchaikovsky’s masterpiece, returns to cinemas from Wednesday.
KILTY PLEASURES: Kiltwalk, which raised millions for a multitude of Scottish causes, hits the roads around the Capital on Sunday, 17 September.
QUICK BITES
WAYNE’S WORLD: An upmarket cocktail bar reputed to be a favourite hang-out of Wayne and Colleen Rooney when they are in Liverpool is opening a new venue in Edinburgh tomorrow. Described by one reviewer as “like stepping into an F Scott Fitzgerald novel, The Puffin Rooms, known for its extensive whisky and cigar menus and live jazz nights, is moving into Quartermile off the Meadows.
MORE RALSTON: Celebrated chef Stuart Ralston is to open his latest city venture, Lyla, in the kitchens formerly run by the late and much-lamented Michelin-starred chef Paul Kitching at 21212 on Royal Terrace. Ralston - the man behind three of the Capital’s favourite restaurants, Aizle, Noto and Tipo - will run the kitchens and dining room, while Kitching’s wife and business partner Katie O’Brien will continue to operate the bedrooms. Lyla will offer a 10-course tasting menu celebrating Scottish islands produce when it opens in mid-October.
SOME EXTRA DIARY DATES FOR YOU
Tomorrow Richard Simpson of Tayburn is the Supper Club guest for WeDO members, the community for entrepreneurs in Edinburgh. If you can’t make this, how about coming to the Networking Breakfast on Thursday 21st September to hear about Edinburgh Inquirer? Founders Euan McGrory, David Forsyth, and Kenny Kemp will be talking about how we are shaking up the media in the capital.
After Scotland’s brutal opening battle against South Africa in the Rugby World Cup in France, [an 18-3 loss] the lads play Tonga on 24 September, Romania on 30 September, and Ireland on 7 October.