The Mediating Role of Green Innovation and Investor Sentiment in Climate Related Risks on Sustainability Reporting: Evidence from the Indonesian Context

Objective: The purpose of this research is that companies must consider the impact that occurs on transition risks or physical risks and then need to know opportunities in risk mitigation efforts, so that it is hoped that there will be a need for opportunities from risks related to climate change. impact on how investors react and the innovations that will be created. Methodology: Sample criteria are financial sector companies and companies that have completed sustainability reporting. This research collected 430 data from 740 companies that met the criteria. Data was collected from the 2021-2022 sustainability report. Results: The results of this analysis provide important insights into the role of green innovation and Investor Sentiment in the relationship between Climate Change Related Risks and sustainability reporting. Conclusion: These conclusions can help companies understand the factors that contribute to the relationship between Climate-related risks and sustainability reporting, as well as the potential impact of green innovation and investor sentiment. The implementation of sustainability reporting is expected to encourage companies to communicate sustainable practices, environmental performance, social impacts and corporate governance more transparently to stakeholders. This strategy will create a higher level of transparency in the company's operations and impact. There are several important implications for companies and practitioners when designing business strategies that focus on sustainability.