Abstract
The Efficient Market Hypothesis (EMH) coined by Eugene Fama in 1970 posits that financial markets are highly efficient in reflecting all available information at any given time. According to this theory, it is impossible to consistently achieve returns that outperform the overall market through expert stock selection or market timing, because asset prices already incorporate and reflect all available information. This hypothesis forms the foundation of many investment strategies and financial models, predicated on the assumption that markets are rational and information is disseminated and acted upon swiftly and accurately. It is the touchstone on which all index investing strategies are based. However, the growing concerns and uncertainties surrounding climate change present a challenge to the EMH, raising questions about whether markets can truly be efficient in the face of such a complex and evolving threat.