But the companies when they make those incredible profits, aren't thinking about the planet. They are thinking about their great business skill and acumen and patting themselves on the back for it. The last thing they would think of is some reason that their success isn't due solely to that.
Additionally, each one person in these companies probably optimizes for their role in particular. A tragedy of the commons affect takes place and the company as a while is misguided and immoral even if the people themselves are not.
How can you avoid problems like this? legislation?
They're playing the game to the best of their abilities by the rules set by the government. It's most convenient to think about this game-theoretically: assume companies will always optimize their profit, and then adjust public policy until unilateral economic self-interest aligns with the public / environmental good.
Many energy companies (e.g. Exxon Mobil) have already invested in green technology, so industry push-back on climate regulation is not universal. Also representatives are democratically elected, so industry doesn't have total control over the political process.
That said it's true that corporations have political clout through lobbying and media campaigns. Some of this is necessary to negotiate regulations with governments. In my opinion a more efficient system / more pure democracy would come by having democratically elected leaders evaluate the positive and negative externalities of various activities independently of industry, and then taxing to internalize these costs.
Additionally, each one person in these companies probably optimizes for their role in particular. A tragedy of the commons affect takes place and the company as a while is misguided and immoral even if the people themselves are not.
How can you avoid problems like this? legislation?