Enbridge (ENB)

Risks

• Climate change risks could adversely affect our business, operations and financial results, and these effects could be material.
• Pipeline operations involve numerous risks that may adversely affect our business, financial results and the environment.
• A service interruption could have a significant impact on our operations, and negatively impact financial results, relationships with stakeholders and our reputation.
• Our operations involve safety risks to the public and to our workers and contractors.
• Cyber-attacks or security breaches could adversely affect our business, operations or financial results.
• Pandemics, epidemics or disease outbreaks, such as the COVID-19 pandemic, may adversely affect local and global economies and our business, operations or financial results.
• Terrorist attacks and threats, escalation of military activity in response to these attacks or acts of war, and other civil unrest or activism could adversely affect our business, operations or financial results.
• There are utilization risks with respect to our assets.
• Our assets vary in age and were constructed over many decades which may cause our inspection, maintenance or repair costs to increase in the future.
• 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.
• Execution of our projects subjects us to various regulatory, operational and market risks that may affect our financial results.
• Changing expectations from stakeholders regarding ESG practices and climate change or erosion of stakeholder trust or confidence could damage our reputation and influence actions or decisions about our company and industry and have negative impacts on our business, operations or financial results.
• Our forecasted assumptions may not materialize as expected, including on our expansion projects, acquisitions and divestitures.
• Our insurance coverage may not be sufficient to cover our losses in the event of an accident, natural disaster or other hazardous event.
• We are exposed to the credit risk of our customers.
• Our risk management policies cannot eliminate all risks. In addition, any non-compliance with our risk management policies could adversely affect our business, operations or financial results.
• 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.
• Our transformation projects may fail to fully deliver anticipated results.
• Our business is undergoing significant changes driven by technological advancements and the energy transition, which could impact our strategic plan, business, operations or financial results.
• Our Liquids Pipelines growth rate and results may be directly and indirectly affected by commodity prices and government policy.
• Our Energy Services and Gas Transmission and Midstream results may be adversely affected by commodity price volatility.
• We rely on access to short-term and long-term capital markets to finance capital requirements and support liquidity needs, and 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.
• 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.
• Our operations are subject to numerous environmental laws and regulations, including those relating to climate change and GHG emissions and climate-related disclosure, as well as internal initiatives to reduce GHG emissions, compliance with which may require significant capital expenditures, increase our cost of operations and affect or limit our business plans, or expose us to environmental liabilities.
• 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.
• 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.
• We could be subject to changes in our tax rates, the adoption of new US, Canadian or international tax legislation or exposure to additional tax liabilities.
• We are involved in numerous legal proceedings, the outcomes of which are uncertain, and resolutions adverse to us could adversely affect our financial results.