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This chapter explores the role of Human Impact Units (Hu) and regenerative authentication credits in transforming environmental, social, and governance (ESG) governance into a more transparent and equitable knowledge commons. The authors argue that current ESG valuation models, particularly those rooted in carbon-centric methodologies, fail to capture the full spectrum of ESG impacts and often lead to “greenwashing.” By shifting the focus to noncarbon-based valuation mechanisms, such as the Hu and RACs frameworks, the chapter demonstrates how ESG efforts can be more accurately monetized, fostering greater trust and transparency in ESG claims. The authors build the theoretical foundation by proposing the concept of “ESG as knowledge commons” for managing environmental commons, and suggest that “truth” serves as the shared resource, documented through blockchain. Specifically, RACs utilize a blockchain-based framework to ensure data permanence and immutability while allowing for controlled transparency. This research underscores the permanence of truth, enabled by the network’s immutability. Overall, RACs offer an alternative governance model to traditional ESG approaches, leveraging the polycentric nature of blockchain networks to effectively address the uncertainty inherent in the ESG industry.
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