Geopolitical Risk, Economic Uncertainty dan Climate Uncertainty: Implikasi terhadap kinerja saham IDX ESG Leaders

Salma, Sherika
Kornitasari, Yenny

Contemporary Studies in Economic, Finance and Banking (CSEFB)
Vol. 5 No. 3 (2026)

Growing concern about climate change and global uncertainty have generated several green investment, including ESG stocks. This study explore the asymmetric and nonlinear effect of geopolitical risk (GPR), economic policy uncertainty (EPU), and climate policy uncertainty (CPU) on Indonesian ESG stocks index (IDX ESG Leader) by using Non-linear Autoregressive Distributed Lag (NARDL) approach. The result shows that GPR, EPU, and CPU negatively affect IDXESGL in short term. Futhermore, in long term EPU still has negative impact but GPR and CPU have positive impact on IDXESGL performance. The findings suggest Indonesian governance to increase effectiveness and eficiency of regulation to minimize EPU transmission in stock market. Beside, investor and firms can use ESG stock as safe heaven asset on their long-term investment again geopolitical risk and climate uncertainty.