by SETYO BUDIANTORO
It’s time to shift global finance’s metrics from return on investment to return on humanity
On paper, the global financial system was built to allocate capital toward the most productive uses. But in practice, it has often become a force that funds collapse, with growing speed and sophistication.
We now live in an era where capital has lost its moral compass, accelerating the very crises it claims to mitigate and solve. Finance, instead of being a servant of life, has become its master — setting the rules for who gets to dream, who gets to survive and whose futures are deemed “bankable.”
In 2022, global fossil fuel subsidies reached US$7 trillion, about 7.1% of global GDP, according to the International Monetary Fund (IMF). Meanwhile, total global climate finance remains around $1.3 trillion per year, falling short by more than $2.4 trillion annually to meet the Paris Agreement’s 1.5°C target of limiting global warming.
That means we are financing destruction five times more than we are funding preservation. We are not merely failing to solve the crisis — we are actively underwriting it.
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.
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