Enbridge (ENB) FY2025 10-K Risk Factors: 12 New, 7 Dropped

What the changes say

Enbridge increased focus on 2025 US tariff announcements and retaliatory measures impacting Canadian energy.

What changed since the prior 10-K

New

NewRISKS RELATED TO OPERATIONAL DISRUPTION OR CATASTROPHIC EVENTS
Our business is dependent upon information systems and other digital technologies to control our plants, pipelines and other assets, process transactions, and summarize and report results of operations
Cybersecurity risks have grown due to sophisticated attacks, geopolitical tensions, and potential supply chain vulnerabilities.
NewRISKS RELATED TO OPERATIONAL DISRUPTION OR CATASTROPHIC EVENTS
Advancements in AI and the speed at which we can implement them or not increases our cybersecurity risks discussed above and also have the potential to negatively affect our business, operations, reputation or financial results
Adopting generative AI and cloud platforms increases Enbridge's technology vulnerabilities, data privacy risks, and decision-making errors.
NewRISKS RELATED TO OPERATIONAL DISRUPTION OR CATASTROPHIC EVENTS
We are subject to risks relating to the integrity of our systems and infrastructure, as well as affiliate and third-party computer systems, computer networks and other communication systems
System interruptions from natural disasters, cyber attacks, or third-party software failures could disrupt pipeline operations.
NewRISKS RELATED TO OUR BUSINESS AND INDUSTRY
Competition in all of our businesses, including competition for new project development opportunities, could have a negative impact on our business, financial condition or results of operations
Enbridge faces intense competition across liquids pipelines, gas transmission, and renewable power from alternative energy sources and electricity.
NewRISKS RELATED TO OUR BUSINESS AND INDUSTRY
Our secured projects and maintenance programs are subject to various factors, which may affect our ability to drive long-term growth
Project execution faces delays from politicized permitting, protests, supply chain challenges, labor shortages, and new anti-forced labor legislation.
NewRISKS RELATED TO OUR BUSINESS AND INDUSTRY
other periodic retaliatory tariffs on Canada
US tariff announcements and retaliatory measures from other governments create market volatility, inflation, and construction cost increases.
NewRISKS RELATED TO OUR BUSINESS AND INDUSTRY
Any of the foregoing could significantly adversely impact our business, operations or financial results
Changes in interest rates and foreign exchange rates can create material financial losses despite risk management policies.
NewRISKS RELATED TO OUR BUSINESS AND INDUSTRY
Our use of debt financing exposes us to interest rate fluctuations on both future fixed rate debt issuances and floating rate debt. While our financial results are denominated in Canadian dollars, many of our businesses have foreign currency revenues or expenses, particularly the US dollar
Using debt and financial derivatives exposes Enbridge to interest rate fluctuations, foreign currency risks, and unauthorized trading losses.
NewRISKS RELATED TO OUR BUSINESS AND INDUSTRY
Unexpected shifts in energy demands, including those driven by climate change concerns, could reduce revenue through, for example, reduced throughput volumes on our pipeline systems
Sustainability goals involve significant costs, and failing to achieve them could harm Enbridge's reputation and trigger litigation.
NewRISKS RELATED TO OUR BUSINESS AND INDUSTRY
We may encounter difficulties in successfully integrating the US Gas Utilities into our business, which may negatively affect the expected benefits from the Acquisitions
Integrating the newly acquired US Gas Utilities may cause management distraction, unforeseen expenses, and disruptions to ongoing business.
NewRISKS RELATED TO OUR BUSINESS AND INDUSTRY
A significant self-insured loss, uninsured loss, a loss significantly exceeding insurance policy limits, delays in claim payments, or inability to renew insurance policies on similar or favorable terms, could materially and adversely affect our business, financial condition and results of operations
Failing to maintain investment-grade credit ratings would increase borrowing costs and impair cost-effective access to capital markets.
NewRISKS RELATED TO GOVERNMENT REGULATION AND LEGAL RISKS
PHMSA issued rules updating requirements for sustainable and safe pipeline operation and refocused its efforts to safety regulation
PHMSA safety rules and evolving regulatory streamlining initiatives in Canada and the US could increase legal challenges for pipeline projects.

Dropped

DroppedRISKS RELATED TO OPERATIONAL DISRUPTION OR CATASTROPHIC EVENTS
These 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
DroppedRISKS RELATED TO OPERATIONAL DISRUPTION OR CATASTROPHIC EVENTS
Cyber attacks and other cybersecurity incidents pose threats to our technology systems and could materially adversely affect our business, operations, reputation or financial results
DroppedRISKS RELATED TO OPERATIONAL DISRUPTION OR CATASTROPHIC EVENTS
Pandemics, epidemics or infectious disease outbreaks may adversely affect local and global economies and our business, operations or financial results
Operational risks from severe weather conditions, natural disasters, and human error.
DroppedRISKS RELATED TO OUR BUSINESS AND INDUSTRY
Competition 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
DroppedRISKS RELATED TO OUR BUSINESS AND INDUSTRY
Our 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
DroppedRISKS RELATED TO OUR BUSINESS AND INDUSTRY
In 2024, we completed the Acquisitions of the US Gas Utilities
Cyber attacks and AI integration threats to technology systems.
DroppedRISKS RELATED TO OUR BUSINESS AND INDUSTRY
We 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

Reworded

100% rewrittenRISKS RELATED TO OPERATIONAL DISRUPTION OR CATASTROPHIC EVENTS
Operation of complex energy infrastructure involves many hazards and risks that may adversely affect our business, financial results, the environment, relationships with stakeholders, the safety of the public and our workers, and our reputation
Added specific operational hazards including third-party damage, equipment failure, major power disruptions, and cyber or physical security incidents.
Was: Operation 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
99% rewrittenRISKS RELATED TO OUR BUSINESS AND INDUSTRY
The effects of US, Canadian and other governments' policies on tariffs and trade relations are uncertain and could adversely impact our business, operations or financial results
Updated to detail specific US tariff threats, including non-compliant Canadian goods under USMCA and global steel and aluminum tariffs.
Was: The effects of US and Canadian Government policies on tariffs and trade relations between Canada and the US are uncertain and could adversely impact us
95% rewrittenRISKS RELATED TO GOVERNMENT REGULATION AND LEGAL RISKS
Many 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
Added specifics regarding the US administration's 2025 energy emergency declaration and the creation of the National Energy Dominance Council.
90% rewrittenRISKS RELATED TO OPERATIONAL DISRUPTION OR CATASTROPHIC EVENTS
A service interruption could have a significant impact on our operations, and negatively impact financial results, stakeholder relationships and our reputation
Clarified that service interruptions have previously led to shipper claims against Enbridge for disrupting their product transport.
Was: A service interruption could have a significant impact on our operations, and negatively impact financial results, relationships with stakeholders and our reputation
89% rewrittenRISKS RELATED TO OPERATIONAL DISRUPTION OR CATASTROPHIC EVENTS
Our operations involve safety risks to the public and to our workers and contractors
Appended a warning that cyber attacks and cybersecurity incidents pose significant threats to technology systems and reputation.
84% rewrittenRISKS RELATED TO OUR BUSINESS AND INDUSTRY
Our 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
Added that insurance policies are renewed annually, with premiums and policy limits varying based on market conditions.
79% rewrittenRISKS RELATED TO CLIMATE CHANGE
Climate change risks could adversely affect our reputation, strategic plan, business, operations and financial results, and these effects could be material
Retained identical text describing climate change as a systemic physical and transition risk.
72% rewrittenRISKS RELATED TO GOVERNMENT REGULATION AND LEGAL RISKS
Our 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
Refined economic regulation risk to specify that regulatory decisions on tolls and tariffs directly impact Enbridge's ability to operate and earn revenue.
70% rewrittenRISKS RELATED TO OPERATIONAL DISRUPTION OR CATASTROPHIC EVENTS
Terrorist 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
69% rewrittenRISKS RELATED TO OUR BUSINESS AND INDUSTRY
Our forecasted assumptions may not materialize as expected, including on our expansion projects, acquisitions and divestitures
68% rewrittenRISKS RELATED TO OUR BUSINESS AND INDUSTRY
There are utilization risks with respect to our assets, across all business segments
Was: There are utilization risks with respect to our assets
64% rewrittenRISKS RELATED TO GOVERNMENT REGULATION AND LEGAL RISKS
Our operations are subject to a range of regulatory and contractual requirements, including compliance with operational regulations, easements, permits, and other land tenure agreements. Failure to comply with these obligations could negatively impact our reputation, business, operations or financial results
Was: Our 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
61% rewrittenRISKS RELATED TO OUR BUSINESS AND INDUSTRY
Our assets vary in age and were constructed over many decades, which causes our inspection, maintenance or repair costs to increase
38% rewrittenRISKS RELATED TO OUR BUSINESS AND INDUSTRY
Our Gas Transmission results may be adversely affected by commodity price volatility
38% rewrittenRISKS RELATED TO GOVERNMENT REGULATION AND LEGAL RISKS
We are subject to changes in our tax rates, the adoption of new US, Canadian or international tax legislation or exposure to additional tax liabilities
33% rewrittenRISKS RELATED TO OUR BUSINESS AND INDUSTRY
Our business requires the retention and recruitment of a skilled and inclusive workforce, and difficulties in recruiting and retaining our workforce could result in a failure to implement our business plans
Was: Our 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
31% rewrittenRISKS RELATED TO OUR BUSINESS AND INDUSTRY
Our Liquids Pipelines growth rate and results may be adversely affected by commodity prices
Was: Our Liquids Pipelines growth rate and results may be indirectly affected by commodity prices
28% rewrittenRISKS RELATED TO OUR BUSINESS AND INDUSTRY
We are exposed to the credit risk of our customers, counterparties, and vendors

All 31 risk factors

Headings as the filing states them, in filing order.

RISKS RELATED TO OPERATIONAL DISRUPTION OR CATASTROPHIC EVENTS

01Operation of complex energy infrastructure involves many hazards and risks that may adversely affect our business, financial results, the environment, relationships with stakeholders, the safety of the public and our workers, and our reputation100% rewritten
02A service interruption could have a significant impact on our operations, and negatively impact financial results, stakeholder relationships and our reputation90% rewritten
03Our operations involve safety risks to the public and to our workers and contractors89% rewritten
04Our business is dependent upon information systems and other digital technologies to control our plants, pipelines and other assets, process transactions, and summarize and report results of operationsNew
05Advancements in AI and the speed at which we can implement them or not increases our cybersecurity risks discussed above and also have the potential to negatively affect our business, operations, reputation or financial resultsNew
06We are subject to risks relating to the integrity of our systems and infrastructure, as well as affiliate and third-party computer systems, computer networks and other communication systemsNew
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 results70% rewritten

RISKS RELATED TO CLIMATE CHANGE

08Climate change risks could adversely affect our reputation, strategic plan, business, operations and financial results, and these effects could be material79% rewritten

RISKS RELATED TO OUR BUSINESS AND INDUSTRY

09There are utilization risks with respect to our assets, across all business segments68% rewritten
10Our assets vary in age and were constructed over many decades, which causes our inspection, maintenance or repair costs to increase61% rewritten
11Competition in all of our businesses, including competition for new project development opportunities, could have a negative impact on our business, financial condition or results of operationsNew
12Our secured projects and maintenance programs are subject to various factors, which may affect our ability to drive long-term growthNew
13The effects of US, Canadian and other governments' policies on tariffs and trade relations are uncertain and could adversely impact our business, operations or financial results99% rewritten
14other periodic retaliatory tariffs on CanadaNew
15Any of the foregoing could significantly adversely impact our business, operations or financial resultsNew
16Our use of debt financing exposes us to interest rate fluctuations on both future fixed rate debt issuances and floating rate debt. While our financial results are denominated in Canadian dollars, many of our businesses have foreign currency revenues or expenses, particularly the US dollarNew
17Unexpected shifts in energy demands, including those driven by climate change concerns, could reduce revenue through, for example, reduced throughput volumes on our pipeline systemsNew
18Our forecasted assumptions may not materialize as expected, including on our expansion projects, acquisitions and divestitures69% rewritten
19We may encounter difficulties in successfully integrating the US Gas Utilities into our business, which may negatively affect the expected benefits from the AcquisitionsNew
20Our 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, insurance84% rewritten
21A significant self-insured loss, uninsured loss, a loss significantly exceeding insurance policy limits, delays in claim payments, or inability to renew insurance policies on similar or favorable terms, could materially and adversely affect our business, financial condition and results of operationsNew
22Our Liquids Pipelines growth rate and results may be adversely affected by commodity prices31% rewritten
23Our Gas Transmission results may be adversely affected by commodity price volatility38% rewritten
24We are exposed to the credit risk of our customers, counterparties, and vendors28% rewritten
25Our business requires the retention and recruitment of a skilled and inclusive workforce, and difficulties in recruiting and retaining our workforce could result in a failure to implement our business plans33% rewritten

RISKS RELATED TO GOVERNMENT REGULATION AND LEGAL RISKS

26Many 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 results95% rewritten
27PHMSA issued rules updating requirements for sustainable and safe pipeline operation and refocused its efforts to safety regulationNew
28Our operations are subject to a range of regulatory and contractual requirements, including compliance with operational regulations, easements, permits, and other land tenure agreements. Failure to comply with these obligations could negatively impact our reputation, business, operations or financial results64% rewritten
29Our 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 results72% rewritten
30We are subject to changes in our tax rates, the adoption of new US, Canadian or international tax legislation or exposure to additional tax liabilities38% rewritten
31We 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

Other Enbridge 10-Ks

FY2024 10-K risk factors
26 risks
Enbridge faces extensive operational and safety risks across complex cross-border energy infrastructure assets.
Filed Feb 14, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.