Waste Management (WM) risk factors, FY2024 10-K

Other

1. 01If we fail to implement our business strategy, our financial performance and our growth could be materially and adversely affected
2. 02We may not realize the strategic benefits and cost synergies anticipated from the Stericycle acquisition
3. 03Our business is subject to operational and safety risks, including the risk of injury to employees and others
4. 04We may be unable to obtain or maintain required permits for our operations or expand existing permitted capacity at our landfills, due to land scarcity, public opposition or otherwise, which can require us to identify disposal alternatives, resulting in decreased revenue and increased costs
5. 05Increases in our labor costs as a result of labor unions organizing, changes in regulations related to labor unions or increases in employee minimum wages, could adversely affect our future results
6. 06The seasonal nature of our business, severe weather events resulting from climate change and event driven projects cause our results to fluctuate, and prior performance may not be indicative of our future results
7. 07Damage to our reputation and the value of our brand would negatively impact our business
8. 08Focus on, and regulation of, sustainability performance and disclosure can result in increased costs, risk of noncompliance, damage to our reputation and related adverse effects
9. 09Market disruption, including labor shortages, external strikes, and supply chain constraints, and macroeconomic pressures, including inflation, have recently had, and may in the future have, an adverse impact on our business and results of operations
10. 10The environmental services industry is highly competitive, and if we cannot successfully compete in the marketplace, our business, financial condition and operating results may be materially adversely affected
11. 11Our revenues, earnings and cash flows fluctuate based on changes in commodity prices and demand and may fluctuate substantially without notice in the future
12. 12Increasing customer preference for alternatives to landfill disposal and bans on certain types of waste could reduce our landfill volumes and cause our revenues and operating results to decline
13. 13General economic conditions can directly and adversely affect revenues for our services and our income from operations margins
14. 14Reduction in volumes of medical waste, controlled substances wastes, and personal and confidential information, and changing conditions in the healthcare industry, could adversely affect our financial results
15. 15Weakness in the economy may expose us to credit risk of governmental entities and municipalities and other major customers, which could negatively impact our financial results
16. 16Purchasers of our recycling commodities can be particularly vulnerable to financial difficulties in times of commodity price volatility. The inability of our customers to pay us in a timely manner or to pay increased rates, particularly large national accounts, could negatively affect our operating results
17. 17Changes to applicable tax laws and regulation or interpretation thereof or the imposition of new or increased taxes may increase our tax liabilities and could adversely affect our operating results and cash flows
18. 18Shortages in diesel fuel supply or increases in diesel fuel prices will increase our operating expenses
19. 19Large-scale disruption of social and commercial activity and financial markets may have a material adverse impact on our business, financial condition, results of operations and cash flows

Technology and Information Security Risks

1. 20Developments in technology could trigger a fundamental change in our industry, as waste streams are increasingly viewed as a resource, which may adversely impact volumes at our landfills and our profitability
2. 21If we are not able to develop new service offerings and protect intellectual property or if a competitor develops or obtains exclusive rights to a breakthrough technology, our financial results may suffer
3. 22We are dependent on technology, and if our technology fails, our business would be adversely affected
4. 23Inability to adapt to and manage the benefits and risks of artificial intelligence could expose us to liability or put us at a disadvantage
5. 24Significant cybersecurity incidents may negatively impact our business and our relationships with customers, vendors and employees and expose us to increased liability
6. 25Increasing regulatory focus on privacy and data protection issues and expanding laws could negatively impact our business, subject us to criticism and expose us to increased liability
7. 26new and emerging laws and regulations and/ or expanded or novel interpretations of existing laws. Additionally, customers and regulators may seek to hold us responsible for the actions of third parties we work with, such as sub-processors, vendors, or developers

Legal, Regulatory and Compliance Risks

1. 27Our operations are subject to environmental, health and safety laws and regulations, as well as contractual obligations that may result in significant liabilities
2. 28Our sustainability growth strategy includes significant planned and ongoing investments in our WM Renewable Energy segment; changes to federal and state renewable fuel policies could affect our financial performance, and such investments may not yield the results anticipated
3. 29The impact of climate change, and the adoption of climate change legislation or regulations restricting emissions of GHGs, could increase our costs to operate
4. 30Failure to maintain an effective system of internal control over financial reporting, due to technology issues, difficulties integrating Stericycle’s operations and systems, or otherwise, could adversely affect our ability to provide accurate and timely financial statements, which may harm our business and reputation
5. 31We could be subject to significant fines and penalties, and our reputation could be adversely affected, if we or third parties with whom we have a relationship fail to comply with U.S. or foreign laws or regulations
6. 32Currently pending or future litigation or governmental proceedings could result in material adverse consequences, including judgments or settlements
7. 33The timing of the final resolutions to these types of matters is often uncertain. Additionally, the possible outcomes or resolutions to these matters could include adverse judgments or settlements, either of which could require substantial payments, adversely affecting our liquidity

Financial Risks

1. 34Our capital requirements and our business strategy could increase our expenses, cause us to change our growth and development plans, or result in an inability to maintain our desired credit profile
2. 35Increases in the costs of obtaining adequate financial assurance, or the inadequacy of our insurance coverages, could negatively impact our liquidity and increase our liabilities
3. 36We may record material charges against our earnings due to impairments to our assets
4. 37We could face significant liabilities for withdrawal from Multiemployer Pension Plans