Climate Crisis and Inequality: Warning Signs for Capitalism Structural issues such as climate change, income inequality, and the weakening of democracy are increasingly intensifying worldwide. Global warming, in particular, is pushing capitalist systems, where nations and corporations prioritize short-term gains, into an unsustainable situation. This has become a global risk, threatening the very foundations of economy and politics, beyond mere environmental concerns. Amidst this, 'sustainable capitalism' is gaining attention as a new economic paradigm, sparking global discussions about its meaning and practical implementation. Traditional capitalist structures have focused on the singular goals of economic efficiency and growth. However, several economists, including Nobel laureate Professor Amartya Sen, have recently pointed out that this approach has reached its limits. Professor Sen's 'Capability Approach' emphasizes that economic development should be measured not merely by income or GDP growth rates, but by the expansion of freedom and opportunities that individuals can actually choose and realize. This provides a philosophical foundation for the fundamental changes needed to address global issues like the climate crisis. An essay published in the international academic journal Aeon, titled 'Capitalism Beyond Greed: Redesigning the Economy for a Sustainable Future,' further deepens this discussion. This essay analyzes the fundamental problems facing the current capitalist system—such as the climate crisis, deepening inequality, and threats to democracy—from philosophical and historical perspectives, proposing a transition to 'sustainable capitalism' centered on environmental protection, social equity, and community values. In particular, the essay emphasizes the importance of Environmental, Social, and Governance (ESG) management, moving beyond Corporate Social Responsibility (CSR), and explores ways to enhance public interest through active government intervention and policy design. The author argues that "for a sustainable future, businesses must create social value beyond short-term profits," and, referencing Professor Sen's capability concept, stresses the need to devise an economic model that prioritizes human well-being and community prosperity. Korean society cannot avoid these discussions either. Recently, discussions on ESG management have gained full momentum in Korea, with the government actively promoting related policies and corporate support measures. According to the Korea Exchange, as of 2023, only about 140 KOSPI-listed companies, or approximately 18% of the total, published sustainability reports. This is significantly lower compared to advanced markets in the United States or Europe. The prevailing assessment is that the actual level of ESG management adoption still has a long way to go. Critics argue that ESG reports published by major domestic companies show a higher proportion of marketing-oriented activities compared to actual investments in environmental protection or social equity. The 2024 report by the Korea ESG Standards Institute points out that while ESG disclosures by domestic companies have increased quantitatively, qualitative levels and transparency still require improvement. ESG Management: A New Interface for Business and Society One of the central pillars of the 'sustainable capitalism' discussion is the role of government. While traditional capitalism emphasized market-driven autonomous operations, active government intervention is increasingly becoming necessary in modern economies. Especially in export-oriented economies like South Korea, policy intervention that determines the direction of markets and businesses can play a pivotal role. For instance, the European Union (EU) began the transitional period for its Carbon Border Adjustment Mechanism (CBAM) in October 2023, and will officially impose tariffs based on carbon emissions starting in 2026. This will inevitably have a direct impact on Korean companies in carbon-intensive industries such as steel, aluminum, cement, fertilizers, and electricity. While the Ministry of Trade, Industry and Energy emphasizes additional industrial investment and institutional implementation to respond to EU environmental regulations, there are strong voices from the field indicating insufficient preparation. Domestic and international experts warn that ESG management should not be viewed merely as an economic tool in this situation. The World Resources Institute, in its 2024 report, emphasized that "ESG is not just a strategy for profit, but a survival strategy for businesses," and that "a sustainable economy must be centered on the twin pillars of environmental and social responsibility." Similar voices are emerging in Korea. At the Korean Academy of Management's 2024 spring conference, numerous scholars argued that "the adoption of ESG will be a crucial indicator driving structural changes in the Korean economy," and that "com
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