Doesn’t capitalism destroy the environment?

No. Capitalism is the protector of a human being’s environment as opposed to the protection of the environment at the expense of an individual’s well-being.

Under capitalism, all property is privately owned. If one pollutes on one’s property that is one’s right (but in doing so you reduce the property value which would not be in one’s self-interest).

If one’s pollution spreads to another’s property and causes objectively provable damage, the owners of that property can sue for damages (tresspass).

The right to property is not the permission to damage or pollute the property of others. Historically, the privately-owned locks and streams of Scotland were far cleaner than the government-owned cesspools of socialist India.

As for disposing of pollution from industrial development, this requires a technological solution — and capitalism, as social system of innovation and technological progress, is the best suited to provide a solution.