BUILDING SUSTAINABILITY BRIDGES: ANALYZING THE RELATIONSHIP BETWEEN RISK - TAKING AND THE EFFECTIVENESS OF GREEN FINANCE IN COMPANIES LISTED ON THE IDX /SYARIEF GERARLD PRASETYA/ SYAMSU ALAM2/ JULIA SAFITRI3/ ANDI HARMOKO ARIFIN4

This study aims to empirically examine the relationship between risk-taking willingness, green finance, and corporate sustainability performance.Using a quantitative method with Partial Least Square (PLS) analysis, data were analyzed from 99 observations across 25 companies listed on the Indonesia Stock Exchange that published Sustainability Reports during the 2013-2022 period. The study reveals a negative and significant correlation between risk-taking willingness and green finance, but no significant impact on overall sustainability performance. This suggests that although risk-taking may impede green financial practices, it doesn't directly influence a company's sustainability performance. The findings underscore the importance of robust risk management within sustainability frameworks for achieving corporate sustainability objectives, indicating the model's strong predictive capacity. The study offers theoretical insights into how risk-taking behavior
affects the effectiveness of green finance in IDX-listed firms, stressing the alignment of short-term financial objectives with enduring environmental responsibilities. It underscores the significance of bold decision-making, transparent communication, and holistic risk management in driving sustainable financial strategies, thereby enhancing their implementation in corporate environments. Managers can incorporate long-term impact and sustainability analyses into strategic planning while offering incentives for eco-friendly projects. Collaboration with regulators and financial institutions, such as issuing guaranteed
green bonds, can mitigate risks and promote the adoption of green finance, demonstrating that long-term benefits outweigh short-term risks