Former Sierra Club Foundation Director Sues, Alleges Internal Racism and Retaliation Undermined Climate Finance Initiative

Pedro da Silva, a 29-year-old former director at the Sierra Club Foundation, has filed a wrongful termination suit in California alleging that internal racism and retaliation derailed his work leading the foundation’s flagship climate finance initiative, "Shifting Trillions." Da Silva says routine workplace interactions were recast as harassment complaints and that his repeated objections to discrimination and lack of diversity prompted his dismissal.

Background

Da Silva joined the Sierra Club Foundation in May 2023 after a career in investment management to direct "Shifting Trillions," a program intended to shift major banks' capital away from fossil fuels and toward climate solutions. He says he accepted a roughly 40% pay cut to build what he was told would become the foundation’s marquee department and that, despite limited resources, his work influenced more than $2 trillion in investments in two years.

Allegations

In his complaint, da Silva alleges that public commitments to environmental justice were not matched by internal practices. He says he raised concerns about the foundation’s lack of diversity — including the absence of Black women on the board — objected to discouraging investments with Black-led asset managers in response to a separate legal matter, and protested the hiring decisions for senior roles that he viewed as favoring white candidates over more qualified Black applicants.

“They publish these statements about diversity being a strength and then they make it impossible for diverse leaders to survive,” da Silva told the Associated Press.

The lawsuit contends that after da Silva began speaking up, interactions with senior leadership chilled. He alleges the executive director discussed helping to "drum up harassment complaints" against then-executive director Ben Jealous, and that da Silva was later investigated for conduct the foundation characterized as harassment — conduct that the suit describes as innocuous, such as recommending books and music, sending after-hours messages, and taking a work walk.

Foundation Response

A Sierra Club Foundation spokesperson said the decision to terminate da Silva was "carefully considered" and that his claims are "antithetical to our values and policies and are completely without merit," adding that the organization will vigorously defend itself in court.

Sector Context

Observers frame da Silva’s case as part of a broader pattern in philanthropy and the nonprofit sector: organizations publicly embraced racial equity after 2020 but in some cases did not sustain the internal investments, staffing support, or accountability needed to make those commitments durable. The Sierra Club also faced a roughly $40 million shortfall in 2023 and three rounds of layoffs that cut about 10% of staff; former executive director Ben Jealous — the group’s first Black leader — was ousted amid staff complaints and has accused the organization of racial retaliation.

Experts warn that, without institutionalized equity in leadership development, decision-making and accountability, progress on diversity may be vulnerable to political backlash and funding changes — potentially driving departures of Black leaders in the nonprofit sector.

What’s Next

Da Silva’s lawsuit is pending in California state court. The outcome could have implications for the Sierra Club Foundation’s internal practices and for how philanthropy supports equity-focused leaders and programs. The foundation denies the claims and says it will defend its position in the appropriate legal forum.

Reporting: The story draws on court filings and reporting by the Associated Press. The Sierra Club Foundation and the plaintiff have provided competing accounts; the allegations are for the court to decide.