The Rt Rev Richard Chartres said "over-valuing" the accumulation of wealth has seen the "under-valuing" of nature, friendships, neighbours and family life.
Speaking at St Paul's Cathedral on Thursday night, he said: "What the Church has to offer is not some ideology or a mere critique but a community in which the Spirit of Jesus dwells."
The full cathedral lit by candlelight is staggering beautiful. #bishopsfarewell2london pic.twitter.com/rvZwysQgkJ
— Sam Donoghue (@SamRDonoghue) February 2, 2017
The farewell service, which marked the final public appearance before Bishop Richard retires, involved a 'pop-up cathedral' being erected outside St Paul's in Paternoster Square.
He extolled the work of L'arche, an organisation founded in France by Jean Vanier, where people with and without learning disabilities live or work in community.
The Bishop said: "By living in intentional community, with people - some of whom have serious learning difficulties and some of whom have other challenges, living with diversity and difference, we open ourselves up to grow spiritually and be transformed."
He said focusing on material possessions has left people feeling "cheated" and "left behind", adding "having the world cannot bring the joy in life and assurance in death that comes from being a partaker, in the words of St Peter, 'of the divine life'..."
You can hear the Bishop of London's sermon in full at 7pm on Sunday on Premier Christian Radio.