Trust Without Exposure

Abstract

Global due diligence regimes, particularly the EU Corporate Sustainability Due Diligence Directive (CS3D), increasingly mandate deep multi-tier supply chain transparency. Yet in high-risk sourcing contexts, expanded disclosure can intensify retaliation and surveillance against vulnerable stakeholders—a dynamic identified here as the Transparency Paradox. This chapter develops an Anonymized Accountability Framework (AAF) grounded in Zero-Knowledge Proofs (ZK-proofs), enabling verifiable compliance without revealing identity-sensitive or locational data. Through formal risk modeling, game-theoretic analysis, and application to the cobalt supply chain in the Democratic Republic of Congo, the chapter demonstrates how proof-based verification can mitigate exposure while preserving regulatory credibility. Comparative governance analysis highlights trade-offs with centralized platforms, and a phased roadmap outlines regulatory pathways for recognizing cryptographic compliance evidence. Introduction