A former Sierra Club Foundation director sues over internal racism that he says hinders its mission

In a high-profile wrongful termination lawsuit filed Thursday in California state court, former Sierra Club Foundation employee Pedro da Silva alleges racial discrimination and retaliation by the prominent environmental organization.

Da Silva, who joined the foundation in May 2023 to lead its ambitious “Shifting Trillions” program, claims his firing came after he raised concerns about discrimination and lack of diversity within the organization. The 29-year-old former investment management professional was hired to direct efforts to redirect major banks’ investments away from fossil fuels toward climate solutions.

“That’s what hurts movements so much,” da Silva told the Associated Press. “Especially organizations like these, they publish these statements about diversity being a strength and then they make it impossible for diverse leaders to survive.”

The Sierra Club Foundation has denied the allegations. A spokesperson stated the decision to terminate da Silva was “carefully considered” and that his claims “were not the cause of his termination, are antithetical to our values and policies and are completely without merit.” The organization says it is “vigorously defending” its position.

The lawsuit emerges during a turbulent period for the Sierra Club, one of America’s oldest grassroots environmental organizations. The group faced a $40 million budget deficit in 2023, leading to multiple rounds of layoffs that eliminated approximately 10% of staff. Ben Jealous, the organization’s first Black executive director, was ousted in August 2023 following staff accusations of harassment and bullying—a move Jealous himself characterized as “racial retaliation.”

Da Silva’s case reflects what he describes as a pattern in the nonprofit sector, particularly following the racial justice movement of 2020. He suggests progressive organizations hired qualified leaders of color to satisfy liberal donors but failed to provide adequate support for their equity-focused initiatives.

According to the lawsuit, da Silva took a 40% pay cut to build what he was told would become the foundation’s flagship program. He claims to have influenced more than $2 trillion in investments within two years despite being denied “virtually all of the resources” promised. While his accomplishments earned him a raise, he says he had to fight just to get one teammate.

Da Silva alleges that his relationship with the foundation’s executive director, Dan Chu, deteriorated after he began speaking up about diversity issues. He pointed out the absence of Black women on the foundation’s board and questioned hiring decisions that passed over qualified Black candidates. According to the lawsuit, Chu confided in da Silva that he was helping “drum up harassment complaints” against Jealous to force him out.

In January 2025, da Silva was informed he was under investigation. The foundation accused him of harassment and hostility toward a subordinate, citing interactions such as recommending an Octavia Butler novel, sharing music by Etta James and Outkast, sending after-hours texts, and taking a work walk through a park.

This case highlights broader concerns in the nonprofit sector about diversity initiatives and leadership support. As many organizations face political backlash against diversity, equity, and inclusion (DEI) efforts, experts worry about potential turnover among Black leaders who recently attained positions of power.

“When equity is woven into leadership development, decision making and accountability, it’s less vulnerable to political cycles,” said Michael Leach, the first White House chief diversity officer under President Biden. “We have to start investing more in trust, not just externally, but internally.”

Recent research by Candid and ABFE surveyed over 200 Black-led nonprofits about the backlash to race-explicit work. ABFE President Susan Taylor Batten noted that Black leaders consistently mentioned the psychological toll of “constantly negotiating their identity” while balancing organizational missions against financial sustainability.

Chanda Causer, a consultant who coaches primarily women leaders of color, describes a troubling pattern where diverse candidates are hired to rescue struggling organizations without proper support. She argues that funders supporting people of color in leadership roles “have a fiduciary responsibility to do oversight and support and help them get to those outcomes.”

The Sierra Club’s internal struggles come at a time when many institutions are reexamining their commitment to racial justice initiatives amid increasing political scrutiny of DEI programs.