Project

Corporate Climate Change Adaptation Supplier-of-Suppliers Sustainability Project (3CA3S Project)

Deep Dependencies Transparency as a Foundation for European Climate Resilience

Revealing hidden climate risks through deep-tier supply chain mapping as a foundation for European climate resilience

Supply Chain Resilience
Climate Adaptation
Deep Tier
Collaborator:
Logo of University of Hamburg

The Challenge: Invisible Risks in Deep Supply Chains

The stability of the European economy is increasingly threatened by climate-related and geopolitical risks that are often invisible, occurring "upstream" in the deeper tiers (Tier 2 and 3) of global supply chains.

  1. 01

    Geographical Distance of Risks

    Climate and geopolitical shocks typically happen outside the EU, beyond direct Tier 1 partners.

  2. 02

    Systemic Cascade Effects

    These cross-border risks create systemic, domino effects that transmit through complex supply networks.

  3. 03

    Structural Intransparency

    Critical dependencies and "Single Points of Failure" are often hidden in deep tiers located in climate-sensitive regions.

  4. 04

    Missing Data Basis

    A systematic, deep-tier risk analysis fails due to a lack of interoperable identifiers, such as incompatible local tax numbers, which prevent a holistic view of the network.

Regulatory Context

The European Commission is moving towards a standardized approach to climate resilience planning, aiming to establish a uniform "Common Reference Scenario" based on a 3°C global warming trajectory (which translates to approximately 4°C for the European continent due to faster regional warming). (ESABCC, 2026) (Responsible Investor, 2026)

3CA3S operationalizes this policy direction by providing the necessary supply-chain visibility: without interoperable deep-tier mapping, climate resilience planning and due-diligence obligations remain impossible to execute across the real upstream network.

A Three-Stage Approach

The project proposes a comprehensive three-stage approach to build climate resilience:

  1. 01

    Global Identity and Interoperability

    • Implement the LEI Standard: Integrate the Legal Entity Identifier (LEI) standard into corporate supplier guidelines. (GLEIF, 2026)
    • Cascading: Consistently transfer this LEI requirement from the Tier 1 level down to Tier 2 and Tier 3 suppliers to overcome data fragmentation.
  2. 02

    Digital Sustainable Supply Chain Network Overview (Mapping)

    • Geographical Visualization: Build a coherent digital overview (mapping) of the entire Tier 2/3 network using the global ID data.
    • Hotspot Identification: Analyze regional concentration risks and geopolitical exposure, such as high flood-risk areas.
  3. 03

    Targeted Multi-Tier Climate Risk Analysis

    • GeoPrecise 3°C-Scenarios: Conduct location-specific climate risk analyses and 3-degree stress tests for the critical nodes identified outside the EU.
    • Proactive Adaptation Strategies: Develop targeted measures to minimize production losses and prepare for upcoming EU regulations like the CSDDD.

Key People

Photo of Alexander Bassen
Alexander Bassen
Professor of Capital Markets and Management, University of Hamburg
Focuses on sustainable finance, ESG integration, and capital market implications of corporate sustainability.
Photo of Andreas Hoepner
Andreas Hoepner
Full Professor of Operational Risk, Banking & Finance, University College Dublin
Head of the Data Science Hub for the EU Platform on Sustainable Finance. Specializes in financial data science, EU Taxonomy regulation, and climate-risk pricing.
Further partners to be announced soon
Partner slot
Additional collaborators will be confirmed as the project moves from planning into execution.

Sources

7
Singh, Jaideep, Tan, Angeline, Chauhan, Rishika, Moran, Matthew, & Salisbury, Daniel (2025). Supply chains and geopolitical crisis: The semiconductor industry and case of Malaysia. Institute of Strategic & International Studies Malaysia; King's College London.
Note. Policy brief, December 2025
Retrieved March 19, 2026.
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Cover image for Corporate Climate Change Adaptation Supplier-of-Suppliers Sustainability Project (3CA3S Project)
Project: Corporate Climate Change Adaptation Supplier-of-Suppliers Sustainability Project (3CA3S Project)
Revealing hidden climate risks through deep-tier supply chain mapping as a foundation for European climate resilience
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