National Galleries director general Annie Lyden defended the decision, stating the funding aligns with the art institution’s ethical standards and is crucial for its “world-class” programme, which “wouldn’t be possible without support from partners like Baillie Gifford”.

Ms Lyden told The Scotsman: “We understand that this is a complex issue, and there are many differing views, but we are confident that the funding we receive from Baillie Gifford meets our strong ethical standards.”

This move comes amidst warnings of an “incredibly fragile state” in Scotland’s arts sector. The National Galleries of Scotland, receiving £26 million annually from the Scottish Government, faces financial difficulties while seeking further funding for a new waterfront project.

While some criticise Baillie Gifford, First Minister John Swinney and culture secretary Angus Robertson have cautioned against disinvestment campaigns, highlighting the potential harm to struggling arts organisations.

The Edinburgh International Festival (EIF) also reaffirmed its partnership with Baillie Gifford.

EIF chief executive Francesca Hegyi said: “Our board has spent a long time examining this question, not just about Baillie Gifford, but the whole principle of ethical funding.

“Our board has examined it from multiple angles and was unanimous in deciding that we should stay with Baillie Gifford.

“They’ve been with us for decades and they’ve been a fantastic partner. Without them, we wouldn’t be able to deliver the work that we do in communities. They really underpin what we do to take the festival out to the people of Edinburgh.”