About episode
If you’re listening to this podcast you’ve probably heard of the Sierra Club. It’s one of the largest environmental organizations in the United States, with about 4 million members and a history of advocacy going back to 1892.
But what do you know about the Sierra Club Foundation? It’s a $200m organization that, as you’d guess, supports the Sierra Club. It also takes on ambitious initiatives to leverage its resources to protect the environment, transform the energy system, and more. One of those initiatives focuses on shifting trillions of dollars out of the fossil fuel economy. It’s a good example of the level of ambition of these organizations.
To learn more, I sat down with Dan Chu and Pedro Henriques Da Silva. Dan is the Executive Director of the Foundation. Pedro is the Director of the Shifting Trillions Program. We had a fascinating conversation about the history, role, and accomplishments of both organizations, the goals and strategy of the Shifting Trillions program, being a 21st-century fiduciary, the upcoming election, and much more. This episode will push your thinking about the role of the Sierra Club and environmental organizations more generally. Enjoy.
In today’s episode, we cover:
- [02:54] Background on Sierra Club
- [05:15] Sierra Club’s history & how the Foundation and Club are different
- [06:56] Size & funding of the organizations
- [08:09] Focus issue areas, how they are decided & how they inform capital allocation
- [10:23] Sierra Club Foundation & its broader role
- [12:37] The Shifting Trillions program & what it’s aiming to solve
- [13:54] The Foundation’s three roles & what it’s doing
- [18:21] How the roles of the Club & Foundation are distinct
- [22:36] What progress has been achieved so far with Shifting Trillions
- [23:57] Exciting goals being pursued
- [25:29] Progress & achievements that Dan has seen during his tenure
- [29:58] The state of the U.S. environmental nonprofit field
- [32:32] Support for climate through philanthropy
- [36:02] The importance of this election from an environmental perspective
- [39:02] Harnessing climate for young voter turnout
Sierra Club’s history & how the Foundation and Club are different
Established 135 years ago, on May 28, 1892, the Sierra Club was founded by John Muir and fellow co-founders in California. They were inspired by the stunning beauty of the Yosemite Valley, which was threatened by logging, mining, and grazing. Their theory of change, which remains relevant today, involved bringing communities together through outings in nature to instill a love for these places, thus empowering individuals to advocate for their protection. Throughout the early 20th century, the Sierra Club played a key role in establishing the national park system and state chapters, contributing to the establishment of numerous national parks. Presently, the Sierra Club comprises 64 state chapters, with 13 in California, along with numerous local groups and thousands of volunteers addressing critical issues such as the extinction crisis and climate change.
The Foundation operates as a distinct 501(c)(3) nonprofit organization, allowing it to accept tax-deductible donations from individuals and foundations. In contrast, the Sierra Club functions as a 501(c)(4) social welfare membership organization, enabling it to engage in advocacy and political activities that a 501(c)(3) cannot undertake.
The Shifting Trillions program & what it’s aiming to solve
Pedro describes Shifting Trillions as a vital initiative aimed at expediting the transition towards a more equitable and sustainable world. He emphasizes the multifaceted nature of capital, which encompasses financial, relational, and intellectual resources crucial for driving change. While policy, technology, and activism are vital components in addressing the climate crisis, ownership and investment play pivotal roles in effecting tangible improvements. Shifting Trillions seeks to mobilize capital towards this goal, recognizing the Sierra Club Foundation as a cornerstone for fostering a healthy planet and advocating for every individual’s right to reside in a flourishing community with equitable systems on a thriving planet.
The Foundation’s three roles & what it’s doing
Pedro outlines the Foundation’s multifaceted roles, beginning with its function as an investor, grounded in the principles of fiduciary duty. He emphasizes the interconnectedness of financial assets with the health of natural and social systems, underscoring the Foundation’s commitment to responsible asset management for the present era. This entails prioritizing the well-being of people and the planet, recognizing that without them, value and returns are unsustainable. As an active asset owner, the Foundation redefines ownership as stewardship, aligning with indigenous wisdom and contemporary community insights to ensure sustainable practices. Engaging with major financial institutions, the Foundation advocates for responsible asset management that safeguards the health of the planet and communities. Additionally, the Foundation assumes a role as a thought leader, challenging conventional narratives on climate change and promoting a holistic approach that prioritizes the well-being of all people and the planet. Ultimately, the Foundation’s efforts aim to foster a sustainable future that benefits all inhabitants of Earth.
Support for climate through philanthropy
Pedro responds by suggesting that the direction of climate philanthropy must be carefully considered, focusing on addressing the root causes rather than just the symptoms of the problem. He emphasizes the importance of investing in solutions that prioritize the health of the planet and its ecosystems, rather than perpetuating unsustainable practices. Pedro advocates for a holistic approach that supports initiatives aligned with preserving Earth’s natural balance, rather than exacerbating existing challenges or introducing new ones.
Dan echoes Pedro’s sentiment, noting that climate issues are often intertwined with broader systemic challenges. He highlights examples such as affordable housing programs, where energy costs for low-income families can have significant climate implications depending on their energy sources. Dan emphasizes the need for a comprehensive approach to climate philanthropy that considers the interconnectedness of various sectors and addresses challenges in a holistic manner. He stresses the importance of avoiding narrow or siloed approaches that may inadvertently create new problems.
Resources Mentioned
- Sierra Club
- Sierra Club Foundation
- Shifting Trillions
- ImpactAlpha Article by Pedro: Fiduciaries have a duty of care to their investors and to the world
Connect with Dan Chu & Pedro Henriques da Silva
Connect with Jason Rissman
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