Former Director Files Suit Alleging Internal Racism at Prominent Environmental Foundation
January 31, 2026
News & Politics

Former Director Files Suit Alleging Internal Racism at Prominent Environmental Foundation

Pedro da Silva claims that racial discrimination within the Sierra Club Foundation undermined its mission and led to his wrongful termination

Summary

Pedro da Silva, a former director of the Sierra Club Foundation's Shifting Trillions program, has filed a wrongful termination lawsuit alleging racial discrimination and retaliation within the organization. Despite the foundation's public commitments to equity and environmental justice, da Silva contends that internal practices fell short, particularly regarding treatment of Black leaders and employees. His lawsuit sheds light on broader challenges faced by Black professionals in nonprofit leadership and the difficulties of implementing diversity, equity, and inclusion initiatives in philanthropy.

Key Points

Pedro da Silva, former director of the Sierra Club Foundation’s Shifting Trillions program, alleges internal racism and wrongful termination after raising concerns about diversity and equity within the organization.
Despite public commitments to environmental justice and diversity following George Floyd's murder, the Sierra Club Foundation is accused of failing to uphold these principles internally, particularly toward Black employees and leaders.
The case highlights wider issues in nonprofit sectors where qualified leaders of color face systemic barriers, insufficient institutional support, and challenges sustaining diversity, equity, and inclusion initiatives amid political and financial pressures.

In May 2023, Pedro da Silva joined the Sierra Club Foundation, the philanthropic branch of the longtime environmental nonprofit originating from John Muir’s legacy, stepping into a pivotal role as director of the "Shifting Trillions" initiative. This program sought to redirect investment portfolios of major financial institutions away from fossil fuels and towards sustainable climate solutions. Da Silva, who previously worked in investment management, took on the task amidst a wave of organizational attention to environmental justice catalyzed by the social upheaval following George Floyd’s murder.

The Sierra Club publicized initiatives to address systemic racial injustices, apologizing for the racist viewpoints of its founder and pledging to diversify its workforce. However, da Silva asserts in a wrongful termination claim filed in California state court that the foundation's internal culture did not align with these public declarations. According to the 29-year-old former employee, what were ordinary workplace interactions between him and colleagues were manipulated into a harassment complaint imbued with stereotypical and racist notions about Black men.

He perceives his dismissal as retaliatory, a consequence of his persistent criticism regarding the organization’s handling of race-related issues and its failure to foster genuine diversity. "That’s what hurts movements so much," da Silva told a reporter. "Especially organizations like these, they publish these statements about diversity being a strength and then they make it impossible for diverse leaders to survive."

This lawsuit comes during a turbulent chapter for the Sierra Club. The organization, one of the nation’s oldest grassroots environmental groups, confronted a $40 million budget deficit in 2023. Ben Jealous, who was the first Black executive director, administered several layoffs equating to roughly ten percent of the staff before his own controversial departure in August amid accusations of harassment and bullying. Jealous labels his ouster as racially motivated retaliation and shares legal representation with da Silva through the firm Hadsell Stormer Renick & Dai, LLP.

The Sierra Club Foundation maintains that the choice to terminate da Silva was "carefully considered." They assert that his claims do not explain his firing, describe them as contrary to the foundation's values and policies, and intend to vigorously contest the lawsuit in court.

Da Silva’s experiences illustrate his view of a persistent problem extending beyond the Sierra Club: progressive nonprofit organizations that made commitments to racial justice in the wake of 2020’s social movements often hired qualified leaders of color but failed to provide adequate internal support for their leadership and policies advancing equity. With recent political pressures and opposition to diversity, equity, and inclusion initiatives—exemplified by federal restrictions during the previous administration—there are concerns that many Black leaders may soon leave these roles shortly after attaining them.

Experts such as Michael Leach, the inaugural White House chief diversity officer under President Biden, emphasize that embedding equity within leadership development, decision making, and accountability mechanisms can safeguard these efforts from politicization. "We have to start investing more in trust, not just externally, but internally," Leach said.

Many institutions have undergone critical reassessments of their racial justice commitments amid shifting funding landscapes. Following executive orders banning certain diversity efforts within federally affiliated organizations, some funders rescinded or reduced their support for race-explicit work. Surveys by organizations including Candid and ABFE, a network for Black philanthropy professionals, reveal that Black leaders in nonprofits often encounter considerable psychological burdens, as they continually navigate the balancing act between their racial identities and organizational imperatives, frequently under precarious financial circumstances.

Expressing apprehension over potential upcoming departures of Black leaders in the field, ABFE President Susan Taylor Batten emphasized the challenges inherent to sustaining these roles over time.

Da Silva’s tenure at the Sierra Club Foundation began with significant promise and commitment. He accepted a 40% salary reduction to lead what he was told would become a flagship, department-scale initiative. The job description mandated leadership in equity, inclusion, and justice.
Da Silva recounts that Dan Chu, the foundation’s executive director, promised extensive team growth in the program’s subsequent years, anticipating a staff of six to ten. While da Silva claims to have influenced over $2 trillion in investments within two years, he reports being denied nearly all the promised resources. Despite his accomplishments securing a raise, obtaining support to staff a teammate required persistent effort.

Concerns arose when da Silva began confronting structural issues. He publicly noted the absence of Black women on the foundation’s board, objected to the decision to halt investments with Black-led asset managers following the Fearless Fund lawsuit, and questioned why a more qualified Black woman was overlooked for a chief legal officer role in favor of a white candidate.

According to the lawsuit, during a trip to Monterey, California, Dan Chu confided to da Silva that he was assisting efforts to generate harassment complaints to facilitate Jealous’s removal. Da Silva also expressed worries that Jealous’s hiring was engineered to ensure his failure and scapegoat him. Their interactions reportedly became more strained over time. Chu allegedly reduced da Silva’s planning horizon and persisted in making dismissive remarks about Black employees. He asked da Silva to identify board members who could assume aspects of his responsibilities.

Da Silva explains, "It was really when I started raising those concerns directly to the executive director about how Black employees were being treated, spoken about most often by him, that things started to go south. I realized that I had sort of stepped into something that was not consistent with what they claimed publicly were their values."

In late January 2025, da Silva was notified by the new chief legal officer via text message that he was under investigation. The foundation accused him of harassment and hostility stemming from interactions with a subordinate, which included recommending literature by Octavia Butler, sharing music by Etta James and Outkast, sending text messages outside business hours, and taking a work-related walk in a park.

These experiences underscore broader challenges for leaders of color in nonprofit institutions. Other individuals have detailed leadership advancement as a "hollow prize," characterized by limited financial compensation despite demanding roles. Chanda Causer, a consultant who coaches women of color in leadership, notes that while salaries have improved over the past decade, disparities remain. She has observed that many women of color in such positions feel added pressure to succeed as the first representatives of their identities in these spaces.

Causer stresses that funders who invest in leaders of color bear responsibilities extending beyond financial support; they must also provide oversight and guidance to enable these leaders to achieve their goals effectively.

Risks
  • Continued internal conflict and legal disputes within influential environmental nonprofits may distract from organizational missions and impact donor trust and funding, affecting the environmental advocacy sector.
  • Retaliation and inadequate support for leaders of color can lead to higher turnover rates among Black nonprofit executives, potentially reducing diversity at leadership levels and undermining progress on equity initiatives across philanthropy.
  • Political rollbacks and scrutiny of DEI efforts create uncertain funding environments for nonprofits committed to racial justice, posing risks to program continuity and organizational stability, especially in the environmental and social justice sectors.
Disclosure
The article presents allegations from Pedro da Silva and responses from the Sierra Club Foundation without adjudication of claims; litigation is ongoing and outcomes remain uncertain.
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