Hay Festival, one of the UK’s major literary gatherings, has suspended its sponsorship arrangement with investment firm Baillie Gifford. This decision follows a robust campaign by Fossil Free Books and the withdrawal of several high-profile participants, intensifying the scrutiny on the festival’s funding sources.

In a statement on Baillie Gifford, Hay Festival CEO Julie Finch said: “Our first priority is to our audience and our artists. Above all else, we must preserve the freedom of our stages and spaces for open debate and discussion, where audiences can hear a range of perspectives.

“Hay Festival Global is a charity. We are grateful to all those artists, partners and audiences who engage and contribute to the conversation, on stage and off.”

Read: Writers boycott Hay Festival over sponsorship concerns

The controversy began to escalate when Fossil Free Books publicised that Baillie Gifford has significant investments in the fossil fuel sector, estimated between £2.5 and £5 billion, and in companies linked to Israeli defense and tech industries, with nearly £10 billion invested. These revelations spurred more than 800 authors and industry professionals to demand that Baillie Gifford divest from these sectors.

In response to the festival’s announcement, a spokesperson for Fossil Free Books articulated the broader implications of the decision: “Hay Festival is right to listen to the concerns of hundreds of book workers who are working to create fossil-free and genocide-free festivals. Hay must now develop a fundraising policy that rules out any future sponsorship by companies that invest or profit from the fossil fuel industry, Israeli occupation, apartheid or genocide, and any other human rights abuses.”

The spokesperson further highlighted the collective influence of industry workers: “This announcement shows the power we have when we unite as workers. It’s proof of the change that is possible when we remain steadfast and unafraid in our solidarity with Palestinians and all communities subjected to human rights abuses, including at the hands of fossil fuel companies.”

Fossil Free Books has also pointed out similar divestment movements worldwide, noting recent actions like Norway’s second-largest asset manager, Storebrand, divesting $141 million from IBM due to its alleged links to Israeli apartheid policies. Globally, institutions managing over $40 trillion have committed to fossil fuel divestment, showcasing a growing trend towards ethical investment.

Read: Literary coalition call on Baillie Gifford to cut ties with Israeli defence on Nakba anniversary

The move by Hay Festival sets a precedent in the cultural sector, underscoring the increasing influence of ethical considerations on the arts and literature communities. As the festival navigates this change, the literary world watches closely, recognising the potential ripple effects across global cultural sponsorships.