This study examines how downstream companies can evaluate and respond to upstream biodiversity-related risks in complex supply chains that prepare for the upcoming sustainability reporting requirements under the Corporate Sustainability Reporting Directive CSRD and ESRS E4. The study uses a case study of a Northern European-based automotive servicing company and analyzes its four tire suppliers in its supply chain by applying TNFD’s LEAP framework. The study explores the broad issue of how companies indirectly linked to biodiversity risks influence the upstream traceability, deforestation mitigation, and supplier transparency. A thematic analysis was conducted by using secondary data from the corporate sustainability reports, CDP reports, and biodiversity risk tools. The findings reveal varying levels of supplier preparedness with key gaps in limited traceability, lack of smallholder farmer engagement, and ecological exposure in Southeast Asian countries. The study recommends structured biodiversity risk criteria in a company’s procurement strategies and aligning with supplier expectations with the TNFD and CSRD standards. The study also provides a biodiversity risk screening checklist to support the downstream company’s efforts in strengthening nature-related disclosure.