Clean Harbors (CLH) risk factors, FY2024 10-K

OPERATIONAL RISKS

1. 01Our businesses are subject to operational and safety risks. Failure to limit our exposure to such risks could have an adverse impact on our results
2. 02Our operations are increasingly dependent upon technology. Failure of these technologies, failure to upgrade or innovate these technologies or failure to identify and develop new technologies could have an adverse impact on our results
3. 03A cybersecurity incident could negatively impact our business, operations and relationships with customers
4. 04We maintain what we believe is sufficient insurance coverage that may (subject to certain policy terms and conditions, including deductibles) cover certain aspects of third-party security and cybersecurity risks and business interruption, however, our insurance coverage may not always cover all related costs or losses
5. 05Natural disasters or other catastrophic events as well as their residual macroeconomic effects, could negatively affect our business

INDUSTRY RISKS

1. 06The hazardous waste management business is subject to significant environmental liabilities
2. 07The hazardous waste management industry is subject to significant economic and business risks
3. 08A significant portion of our business depends upon the demand for emergency response services at industrial facilities or on our roadways, railways or waterways, and other remedial projects and regulatory developments over which we have no control
4. 09If our assumptions relating to expansion of our landfills should prove inaccurate, our results of operations and cash flow could be adversely affected
5. 10Reductions in the demand for oil products and automotive services and volatility in oil prices in the markets we serve may negatively affect certain of our businesses

LEGAL, ENVIRONMENTAL AND REGULATORY COMPLIANCE RISKS

1. 11Our businesses are subject to numerous statutory and regulatory requirements, which may increase in the future
2. 12Regulators, in addition to investors, customers and the public in general, have been increasingly focused on environmental, social and cybersecurity practices of companies. We may be subject to additional regulations and disclosure requirements in the future arising from the increased focus in these areas
3. 13The extensive environmental regulations to which we are subject, including potential climate change legislation and regulations, may increase our costs and potential liabilities and limit our ability to operate and expand our facilities
4. 14Environmental laws and regulations have adversely affected and may adversely affect parts cleaning and other solvent related services
5. 15We are subject to existing and potential product liability lawsuits relating to parts washer services

STRATEGIC TRANSACTION RISKS

1. 16Failure to correctly identify and execute upon strategic acquisitions and divestitures could adversely impact our future results
2. 17Future acquisitions of companies may expose us to unknown liabilities
3. 18If we become unable to obtain, at reasonable cost, the insurance, surety bonds, letters of credit and other forms of financial assurance required for our facilities and operations, our business and results of operations would be adversely affected
4. 19Our insurance coverage and self-insurance reserves may be inadequate to cover all significant risk exposures, and increasing costs to maintain adequate coverage may significantly impact our financial condition and results of operations
5. 20Tax interpretations and changes in tax regulations and legislation could adversely affect our results of operations
6. 21Fluctuations in foreign currency exchange could affect our financial results
7. 22Certain adverse conditions have required, and future conditions might require, us to make substantial write-downs in our assets, which have adversely affected or would adversely affect our balance sheet and results of operations
8. 23Our levels of outstanding debt and letters of credit could adversely affect our financial condition and ability to fulfill our obligations
9. 24The covenants in our debt agreements may restrict our ability to operate our business and might lead to a default under our debt agreements

COMMON STOCK RELATED RISKS

1. 25The Massachusetts Business Corporation Act and our By-Laws contain certain anti-takeover provisions