When Capital Is An Engine Of Humanity's Collapse

Inequality tells the same story. Since the Covid-19 pandemic, the richest 1% of humanity captured nearly two-thirds of all new wealth - $42 trillion out of $67 trillion - while over 3 billion people remain excluded from formal financial services, ranging from productive credit to basic insurance. The world speaks the language of financial inclusion yet silently maintains walls of exclusion - not through accident, but architecture.

The United Nations' Sustainable Development Goals (SDGs) - the world's shared commitment to dignity, equity and sustainability - face a deepening financing gap. Developing countries need over $4.2 trillion annually to meet them, but only a third is being mobilized. And among all the capital flowing through Environmental, Social and Governance (ESG) funds, only about 10% reaches initiatives that meaningfully impact the SDGs.

The rest is theater – a repackaging of comfort, not a redirection of conscience. A study by Scientific Beta in 2021 found no meaningful correlation between ESG scores and actual carbon emissions, reminding us that what looks sustainable on paper often remains extractive in practice.

But perhaps the most dangerous thing about finance's current trajectory is not just that it funds the wrong things - it's that it numbs us into thinking this is normal. That forests must be priced to be protected. That lives must be profitable to be worth saving. That the future must yield returns to deserve attention.

But what if we remembered - quietly, honestly - that not everything valuable can be owned, and not everything that sustains us was ever meant to be monetized? Finance, in its purest form, is not the measure of life. It is meant to serve life, not master it. And perhaps the real wealth of our time is not what we accumulate, but what we choose to protect before it's too late.

Look closely at where capital flows today. It funds the consolidation of wealth, not the redistribution of justice. It powers emissions markets, not a just energy transition. It fuels asset speculation, not soil regeneration. It prioritizes consumer apps over community resilience. We are building economies that expand on spreadsheets but collapse in spirit - growing outward, but hollowing inward.

We often hear the call to“mobilize more finance for good.” But what we need is deeper: not just more money moving, but money moving with meaning. Not just a redirection of capital, but a redefinition of value. It's time to shift our metrics from return on investment to return on humanity.

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From minimizing portfolio risk to preserving the planet's ability to breathe. From performance incentives that reward short-term extraction to systems that restore balance between people, nature and capital. As economist Kate Raworth wisely said,“Finance should be in service to life, not the other way around.”

Today, that's not just a principle - it's a warning. Because when finance becomes untethered from life, every dollar we mobilize becomes a settlement with the past, not a seed for the future. We tell ourselves that finance will solve our problems, but in its current form, it is one of the problems - elegantly engineered, legally sanctioned and systemically blind.

Until capital finds its compass again, one that points not toward economic and profit growth alone, but toward grounded, generative life, we will remain adrift. In a world where finance claims to fund the future, perhaps the bravest act is to ask what kind of future we are funding - and at what cost to what makes us human.

Setyo Budiantoro is Sustainable Development Strategist at The Prakarsa, an MIT Sloan IDEAS Fellow, Advisory Committee Member of Fair Finance Asia and SDGs–ESG Expert at Indonesian ESG Professional Association (IEPA).

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