Enbridge (ENB) risk factors, FY2024 10-K

RISKS RELATED TO CLIMATE CHANGE

1. 01Climate change risks could adversely affect our reputation, strategic plan, business, operations and financial results, and these effects could be material

RISKS RELATED TO OPERATIONAL DISRUPTION OR CATASTROPHIC EVENTS

1. 02Operation of complex energy infrastructure involves many hazards and risks that may adversely affect our business, financial results, the environment, relationships with stakeholders, and our reputation
2. 03These operational risks include adverse weather conditions, natural disasters, accidents, the breakdown or failure of equipment, processes or human error, and lower than expected levels of operating capacity and efficiency. These operational risks could be catastrophic in nature
3. 04A service interruption could have a significant impact on our operations, and negatively impact financial results, relationships with stakeholders and our reputation
4. 05Our operations involve safety risks to the public and to our workers and contractors
5. 06Cyber attacks and other cybersecurity incidents pose threats to our technology systems and could materially adversely affect our business, operations, reputation or financial results
6. 07Terrorist attacks and threats, escalation of military activity in response to these attacks or acts of war, other civil unrest or activism, or geopolitical uncertainty could adversely affect our business, operations or financial results
7. 08Pandemics, epidemics or infectious disease outbreaks may adversely affect local and global economies and our business, operations or financial results

RISKS RELATED TO OUR BUSINESS AND INDUSTRY

1. 09There are utilization risks with respect to our assets
2. 10Our assets vary in age and were constructed over many decades, which causes our inspection, maintenance or repair costs to increase
3. 11Competition may result in a reduction in demand for our services, fewer project opportunities or assumption of risk that results in weaker or more volatile financial performance than expected
4. 12Our project execution continues to face challenges with intense scrutiny on regulatory and environmental permit applications, politicized permitting, public opposition including protests, action to repeal permits, and resistance to land access
5. 13The effects of US and Canadian Government policies on tariffs and trade relations between Canada and the US are uncertain and could adversely impact us
6. 14Our forecasted assumptions may not materialize as expected, including on our expansion projects, acquisitions and divestitures
7. 15In 2024, we completed the Acquisitions of the US Gas Utilities
8. 16Our insurance coverage may not fully cover our losses in the event of an accident, natural disaster or other event, and we may encounter increased cost arising from the maintenance of, or lack of availability of, insurance
9. 17We rely on access to short-term and long-term capital markets to finance capital requirements and support liquidity needs. Cost effective access to those markets can be affected, particularly if we or our rated subsidiaries are unable to maintain an investment-grade credit rating
10. 18Our Liquids Pipelines growth rate and results may be indirectly affected by commodity prices
11. 19Our Gas Transmission results may be adversely affected by commodity price volatility
12. 20We are exposed to the credit risk of our customers, counterparties, and vendors
13. 21Our business requires the retention and recruitment of a skilled and diverse workforce, and difficulties in recruiting and retaining our workforce could result in a failure to implement our business plans

RISKS RELATED TO GOVERNMENT REGULATION AND LEGAL RISKS

1. 22Many of our operations are regulated and failure to secure timely regulatory approval for our proposed projects, or loss of required approvals for our existing operations, could have a negative impact on our business, operations or financial results
2. 23Our operations are subject to operational regulation and other requirements, including compliance with easements and other land tenure documents, and failure to comply with applicable regulations and other requirements could have a negative impact on our reputation, business, operations or financial results
3. 24Our operations are subject to economic regulation and failure to secure regulatory approval for our proposed or existing commercial arrangements could have a negative impact on our business, operations or financial results
4. 25We are subject to changes in our tax rates, the adoption of new US, Canadian or international tax legislation or exposure to additional tax liabilities
5. 26We are involved in numerous legal proceedings, the outcomes of which are uncertain, and resolutions adverse to us could adversely affect our financial results and reputation