ENBRIDGE INC

Previous wording

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.

Current wording

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.

Previous wording

Operational risk is also intensified by exposure to severe weather conditions and natural disasters, including those related to climate change, which may affect the safety and reliability of our operations, including, but not limited to heavy snowfall, heavy rainfall, floods, landslides, fires, hurricanes, cyclones, tornados, tropical storms, ice storms, and extreme temperatures, and chronic physical risks, such as long-term changes in precipitation patterns, or sustained higher temperatures.

Current wording

Operational risk is also intensified by exposure to severe weather conditions and natural disasters, including those related to climate change. Events such as heavy snowfall, extreme precipitation, floods, landslides, wildfires, hurricanes, cyclones, tornadoes, tropical storms, storm surges, ice storms, and extreme temperatures, as well as chronic physical risks like long-term changes in precipitation patterns, or sustained higher temperatures, can affect the safety and reliability of our operations. We have and expect to continue to experience climate-related physical risks, potentially with increasing frequency and severity, and we cannot guarantee that we will not experience catastrophic or other events in the future.

Previous wording

Our assets and operations are exposed to potential damage or other negative impacts from these operational risks, which could result in reduced revenue from business disruption or reduced capacity and may also lead to increased costs due to repairs and required adaptation measures. Such events have led to, and could in the future lead to, rupture or release of product from our pipeline systems and facilities, resulting in damage to property and the environment, personal injury or loss of life. Such an incident has in the past, and could in the future, result in substantial losses for which insurance may not be sufficient or available and for which we may bear part or all of the cost, thereby negatively impacting earnings. Such incidents could also have lasting reputational impacts and could impair our relationships with various stakeholders. For pipeline and storage assets located near populated areas, including residential communities, commercial business centers, industrial sites and other public gathering locations, the level of damage resulting from these events could be greater.

Current wording

Our assets and operations are vulnerable to damage or disruption from these events, which could result in reduced revenue from business interruptions or reduced capacity and may also increase costs for repairs, remediation or adaptation measures. Such events have led to, and could again lead to, ruptures or product releases from our pipelines or facilities, causing property and environmental damage, personal injury or loss of life. Such an incident has in the past, and could again in the future, result in substantial losses that insurance may not fully cover, negatively impacting earnings. Such incidents could also have lasting reputational impacts and impair stakeholder relationships. For pipeline and storage assets located near populated areas, the potential damage could be even greater. We expect to continue to incur significant costs to prepare for and respond to operational risks. Additionally, we have faced, and could face again, litigation and significant fines and penalties from regulators in connection with such events.

Previous wording

A service interruption could have a significant impact on our operations, and negatively impact financial results, relationships with stakeholders and our reputation.

Current wording

A service interruption could have a significant impact on our operations, and negatively impact financial results, stakeholder relationships and our reputation.

Previous wording

A service interruption due to a major power disruption, curtailment of commodity supply, operational incident, security incident (cyber or physical), availability of gas supply or distribution, or other reasons, could have a significant impact on our operations and negatively impact financial results, relationships with stakeholders, our reputation or the safety of our end-use customers. Service interruptions that impact our crude oil and natural gas transportation services can negatively impact shippers’ operations and earnings as they are dependent on our services to move their product to market or fulfill their own contractual arrangements, and this has in the past led to and may again lead to claims against us. We have experienced, and may again experience, service interruptions, restrictions or other operational constraints, including in connection with the kinds of operational incidents referred to in the previous risk factor.

Current wording

A service interruption could significantly and negatively affect our operations, financial results, stakeholder relationships, the safety of our end-use customers, and our reputation. Interruptions to our crude oil and natural gas transportation services can disrupt customer operations and earnings, as they rely on us to move their products to market and fulfill contractual arrangements. Such disruptions have previously led to claims against us and they may do so again. We have experienced, and may again experience, service interruptions, restrictions or other operational constraints, including those related to operational incidents described in the preceding risk factor.

Previous wording

Enbridge assets may change over time and operate over a broad geographic area. These assets include liquids pipelines, gas transmission, and gas distribution systems which are operated near populated areas. A major incident involving these assets has resulted in and may again result in injury or loss of life to members of the public. In addition, given the natural hazards inherent in our operations, our workers and contractors are subject to personal safety risks. A public safety incident or an injury or loss of life to our workers or contractors, which we have experienced in the past and, despite the precautions we take, may experience in the future, could result in reputational damage to us, legal claims, material repair costs or increased operating and insurance costs.

Current wording

Enbridge's assets span a broad geographic area and often operate near populated areas. We have experienced major incidents involving these assets that have resulted in, and may again result in, injury or loss of life to members of the public. In addition, given the hazards inherent in our operations, our workers and contractors also face personal safety risks. Despite the precautions we take, such safety incidents have occurred in the past and may occur in the future. Such events could lead to reputational damage, legal claims, material repair costs, and higher operating or insurance costs.

Previous wording

Cyber attacks and other cybersecurity incidents pose threats to our technology systems and could materially adversely affect our business, operations, reputation or financial results.

Current wording

Cyber attacks and other cybersecurity incidents pose significant threats to our technology systems and could materially adversely affect our business, operations, reputation or financial results.

Previous wording

Our business is dependent upon information systems and other digital technologies for controlling our plants, pipelines and other assets, processing transactions and summarizing and reporting results of operations. With the evolution of AI, our business has incorporated AI into our operations in order to gain efficiencies and productivity in our day-to-day operations, which has the potential to increase technology and cybersecurity risks. The secure processing, maintenance and transmission of information is critical to our operations.

Current wording

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.

Previous wording

Cybersecurity risks have increased in recent years as a result of the proliferation of new technologies and the increased sophistication of cyber attacks and financially-motivated cybercrime, as well as international and domestic political factors, including geopolitical tensions, armed hostilities, war, civil unrest, sabotage, terrorism and state-sponsored or other cyber espionage. Human error or malfeasance can also contribute to a cyber incident, and cyber attacks can be internal as well as external and occur at any point in our supply chain. Because of the critical nature of our infrastructure and our use of information systems and other digital technologies to control our assets, we face a heightened risk of cybersecurity incidents, such as ransomware, theft, misplaced or lost data, programming errors, phishing attacks, denial of service attacks, acts of vandalism, computer viruses, malware, hacking, malicious attacks, software vulnerabilities, employee errors and/or malfeasance, or other attacks, security or data breaches or other cybersecurity incidents. Cyber threat actors have attacked and continue to threaten to attack energy infrastructure, including our assets, and various government agencies have increasingly stressed that these attacks are targeting critical infrastructure, including pipelines, public utilities, and power generation facilities, and are increasing in sophistication, magnitude, and frequency. Additionally, these risks may escalate during periods of heightened geopolitical tensions. In addition, new cybersecurity legislation, regulations and orders have been recently implemented or proposed, resulting in additional actual and anticipated regulatory oversight and compliance requirements, which will require significant internal and external resources. We cannot predict the potential impact to our business of potential future legislation, regulations or orders relating to cybersecurity.

Current wording

Cybersecurity risks have grown due to the proliferation of new technologies, increasingly sophisticated cyber attacks, and financially-motivated cybercrime, as well as international and domestic political factors, including geopolitical tensions, armed conflicts, civil unrest, sabotage, terrorism, and state-sponsored or other cyber espionage. Human error or malfeasance can also contribute to cyber incidents, which may occur internally or externally and at any point in our supply chain. Because of the critical nature of our infrastructure and our use of information systems and other digital technologies to control our assets, we face a heightened risk of cybersecurity incidents, such as ransomware, theft, misplaced or lost data, programming errors, phishing attacks, denial-of-service attacks, acts of vandalism, computer viruses, malware, hacking, malicious attacks, software vulnerabilities, employee errors and/or malfeasance, or other attacks, security or data breaches, or other cybersecurity incidents. Cyber threat actors have attacked, and continue to threaten to attack, energy infrastructure, including our assets. Government agencies have warned that attacks targeting critical infrastructure - including pipelines, utilities, and power generation facilities - are increasing in sophistication, magnitude, and frequency. These risks may escalate during periods of heightened geopolitical tensions.

Previous wording

We have experienced an increase in the number of attempts by external parties to access our systems or our company data without authorization, and we expect this trend to continue. Although we devote significant resources and security measures to prevent unwanted intrusions and to protect our systems and data, whether such data is housed internally or by external third parties, we and our third-party vendors have experienced, and expect to continue to experience, cyber attacks of varying degrees in the conduct of our business, including denial of service attacks. To date, these prior cyber attacks have not, to our knowledge, had a material adverse effect on our business, operations or financial results. However, we have experienced an increasing number of cybersecurity threats in recent years and there is a risk that any such incidents could have a material adverse effect on us in the future.

Current wording

We have experienced an increase in unauthorized attempts to access our systems and company data, and expect this trend to continue. While we invest heavily in security measures to prevent unwanted intrusions and to protect our systems and data, whether such data is housed internally or by external third parties, we and our third-party vendors have experienced, and expect to continue to experience, cyber attacks of varying degrees, including denial-of-service attacks. To date, these attacks have not, to our knowledge, had a material adverse impact on our business, operations or financial results, but future incidents could.

Previous wording

Our technology systems or those of our vendors or other service providers are expected to become the target of further cyber attacks or security breaches which could compromise our data and systems or our access thereto by us, our customers or others, affect our ability to correctly record, process and report transactions, result in the loss of information, or cause operational disruption or incidents. There can be no assurance that our business continuity plans will be completely effective in avoiding disruption and business impacts. Furthermore, we and some of our third-party service providers (who may in turn also use third-party service providers) collect, process or store sensitive data in the ordinary course of our business, including personal information of our employees, residential gas distribution customers, land owners and investors, as well as intellectual property or other proprietary business information of ours or our customers or suppliers. In light of the Acquisitions, due to their large residential customer bases, we and some of our third-party services providers will process increasing amounts of personal information.

Current wording

We expect that our technology systems, as well as those of our vendors or other service providers, will continue to be targeted, which could compromise our data and systems, and access thereto by us, our customers or others. Such events could disrupt our operations, impair our ability to correctly record, process and report transactions, or result in the loss of information. There is no certainty that our business continuity measures will completely eliminate the risk of disruption or adverse business effects. Furthermore, we and some of our third-party service providers (who may in turn also use third-party service providers) collect, process or store sensitive data in the ordinary course of our business, including personal information of employees, customers, landowners, and investors, as well as intellectual property or other proprietary business information. These risks are heightened following the Acquisitions, which increase the attack surface and the volume of personal customer information processed.

Previous wording

As a result of the foregoing, we could experience loss of revenues, repair, remediation or restoration costs, regulatory action, fines and penalties, litigation, breach of contract or indemnity claims, cyber extortion, ransomware, implementation costs for additional security measures, loss of customers, customer dissatisfaction, reputational harm, liability under laws that protect the privacy of personal information, other adverse consequences, or other costs or financial loss. In light of the Acquisitions, these risks may be heightened, and the consequences magnified. Regardless of the method or form of cyber attack or incident, any or all of the above could materially adversely affect our reputation, business, operations or financial results.

Current wording

Consequences of a significant cyber incident could include revenue loss, repair, remediation or restoration costs, regulatory action, fines and penalties, litigation, breach of contract or indemnity claims, cyber extortion or ransomware payments, implementation costs for additional security measures, loss of customers, customer dissatisfaction, reputational harm, or other adverse consequences, costs or financial loss. Regardless of the method or form of cyber attack or incident, any or all of the above could materially adversely affect our reputation, business, operations or financial results.

Previous wording

Furthermore, media reports about a cyber attack or other significant security incident affecting Enbridge, whether accurate or not, or, under certain circumstances, our failure to make adequate or timely disclosures to the public, law enforcement, other regulatory agencies or affected individuals following any such event, whether due to delayed discovery or otherwise, could negatively impact our operating results and result in other adverse consequences, including damage to our reputation or competitiveness, harm to our relationships with customers, partners, suppliers, investors, and other third parties, interruption to our management, remediation or increased protection costs, significant litigation or regulatory action, fines or penalties, all of which could materially adversely affect our business, operations, reputation or financial results.

Current wording

Media reports about a cyber attack or other significant security incident, whether accurate or not, or our failure to make adequate or timely disclosures to the public, regulators, law enforcement, or affected individuals could negatively impact our operating results and result in other adverse consequences, including reputational harm, damage to our competitiveness, strained relationships with customers, partners, suppliers, investors, and other stakeholders. Such circumstances could also lead to operational disruption, increased remediation and protection costs, significant litigation or regulatory action, fines or penalties, all of which could materially adversely affect our business, operations, reputation or financial results.

Previous wording

Terrorist attacks and threats (which may take the form of cyber attacks, as outlined above), escalation of military activity, armed hostilities, war, sabotage, or civil unrest or activism may have significant effects on general economic conditions and may cause fluctuations in consumer confidence and spending and market liquidity, each of which could adversely affect our business. Future terrorist attacks, rumors or threats of war, actual conflicts involving the US or Canada, or military or trade disruptions may significantly affect our operations and those of our customers. Strategic critical infrastructure targets, such as energy-related assets, are at greater risk of cyber attack and may be at greater risk of other future attacks than other targets in the US and Canada. Enbridge’s infrastructure and projects under construction could be direct targets or indirect casualties of a cyber or physical attack. In addition, increased environmental activism against construction and operation of energy infrastructure could potentially result in work delays, reduced demand for our products and services, new legislation or public policy or increased stringency thereof, or denial or delay of permits and rights-of-way. Enbridge also faces risks related to international relations and geopolitical events. Factors such as political, economic, or social instability, trade disputes, increased tariffs, changes in laws, strict regulations, and shifts in political leadership can lead to higher commodity prices and affect energy availability and costs.

Current wording

Terrorist attacks and threats (which may take the form of cyber attacks, as outlined above), escalation of military activity, armed hostilities, war, sabotage, or civil unrest or activism may disrupt general economic conditions, cause fluctuations in consumer confidence and spending, and affect market liquidity, all of which could negatively impact our business. Future terrorist attacks, rumors or threats of war, actual conflicts involving the US or Canada, civil unrest or military, trade, or commodity supply and demand disruptions may significantly affect our operations and those of our customers. Strategic critical infrastructure, including energy-related assets, face heightened risk of cyber or physical attacks. Our assets and projects under construction could be direct targets or indirect casualties of such an attack.

Previous wording

Climate-related physical risks, resulting from changing and more extreme weather, can damage our assets and affect the safety and reliability of our operations. Climate-related physical risks may be acute or chronic. Acute physical risks are those that are event-driven, including increased frequency and severity of extreme weather events, such as heavy snowfall, heavy rainfall, floods, landslides, fires, hurricanes, cyclones, tornados, tropical storms, ice storms, and extreme temperatures. Chronic physical risks are longer-term shifts in climate patterns, such as long-term changes in precipitation patterns, or sustained higher temperatures, which may cause sea level rises or chronic heat waves.

Current wording

Climate-related physical risks arise as a result of changing and more extreme weather, which can damage our assets and affect the safety and reliability of our operations. Climate-related physical risks may be acute or chronic. Acute physical risks are those that are event-driven, including increased frequency and severity of extreme weather events, such as heavy snowfall, extreme precipitation, floods, landslides, wildfires, hurricanes, cyclones, tornados, tropical storms, storm surges, ice storms, and extreme temperatures. Chronic physical risks are longer-term shifts in climate patterns, such as long-term changes in precipitation patterns, or sustained higher temperatures, which may cause sea level rises or chronic heat waves. Chronic physical risks may also include altered river flows, land shifting, and subsidence.

Previous wording

Our assets and operations are exposed to potential damage or other negative impacts from these kinds of events, which have in the past resulted and could in the future result in reduced revenue from business disruption or reduced capacity and may also lead to increased costs due to repairs and required adaptation measures. We have experienced operational interruptions and damage to our assets from such weather events in the past, and we expect to continue to experience climate-related physical risks in the future, potentially with increasing frequency or severity. Such events may also result in personal injury, loss of life.

Current wording

Our assets and operations are exposed to the risk of damage or other negative impacts from these kinds of events, which have resulted in and could in the future result in, reduced revenue from business disruption or reduced capacity and increased costs due to repairs and adaptation measures. We have experienced operational interruptions and damage to our assets from such weather events in the past, and we expect to continue to experience climate-related physical risks in the future, potentially with increasing frequency or severity. Such events may also result in personal injury or loss of life.

Previous wording

The transition to a lower-carbon economy involves policy, legal, technology and market changes which may, in turn, increase our cost of operations and influence stakeholder sentiment and decisions about Enbridge, including potentially reducing the demand for some of our services, which could result in a decrease in profitability or reduction in the value of our assets. Transition risks include the following categories:

Current wording

The global transition to a lower-carbon economy involves policy, legal, technology and market changes which may, in turn, increase our cost of operations and influence stakeholder sentiment and decisions about Enbridge. Potential impacts include adverse impact on our reputation and reduced demand for some of our services, which could, in turn, result in decreased profitability or reduced value of our assets. Transition risks include the following categories:

Previous wording

Concerns about climate change, increased demand for lower-carbon forms of energy and new energy technologies, changing customer behavior, and reduced energy consumption could impact the demand for our services or our securities. In recent years, certain investors, lenders and insurers have taken or are contemplating actions to decrease the carbon intensity of their portfolios or reduce or cease support for the fossil fuel industry. Such measures could result in increased costs to manage these risks and could negatively impact our access to and cost of capital, as well as demand for, or value of, our securities or our services. Uncertainty in market signals, such as abrupt and unexpected shifts in energy costs and demands, including due to climate change concerns, could impact revenue through reduced throughput volumes on our pipeline transportation systems.

Current wording

Concerns about climate change, rising demand for lower-carbon energy and new energy technologies, shifting customer behavior, and reduced energy consumption could decrease demand for our services or our securities. In recent years, certain investors, lenders and insurers have begun or are contemplating reducing the carbon intensity of their portfolios or limiting support for the fossil fuel industry. These actions could increase our costs to manage these risks and restrict access to, or increase the cost of, capital and insurance. Market uncertainty, including abrupt or significant changes in energy prices and demand, which could be driven by climate change, could negatively impact operations, for example through reduced throughput volumes on our pipeline systems.

Previous wording

Companies across all sectors and industries are facing changing expectations and increased scrutiny from stakeholders related to their approach to climate change and GHG emissions. Companies in the energy industry are experiencing stakeholder opposition to their operations and infrastructure projects. Enbridge’s ESG goals, sustainability-related activities, commitments, and plans, including climate-related information and data, are based on various assumptions, estimates, judgments, risks, and uncertainties. Achieving these ESG goals and commitments will require collective efforts and actions from a wide range of stakeholders, much of which is beyond our control, and there can be no assurance that the impact of these efforts and actions will be realized. Our ESG goals and pathways for reducing operational emissions will continue to evolve and may need to be restated, modified, or recalibrated as data improves, standards, methodologies, metrics, and measurements mature, and as legislation, regulations, policies, and stakeholder sentiment evolve. If we experience challenges, or perceived challenges in achieving our climate-related goals, are not able to meet future climate-related, emissions, or other regulatory or reporting requirements, or are not able to meet or manage stakeholder expectations regarding climate change or disclosure of climate-change information (including potential allegations of greenwashing), it could negatively impact our reputation or investor sentiment and could expose us to government enforcement actions or litigation, which may, in turn, impact our business, operations or financial results.

Current wording

Enbridge’s climate-related activities, goals, commitments, and plans are based on various assumptions, estimates, judgments, risks, and uncertainties. Rules, standards, and methodologies for setting climate-related goals and for measuring and reporting climate-related information are still developing. As such, our climate-related goals and disclosures are based on assumptions that are subject to change. Achieving our sustainability-related goals and commitments will require collective efforts and actions from a wide range of stakeholders, much of which is beyond our control, and there can be no assurance that these efforts will deliver the intended impact. Our climate-related goals and emissions-reduction pathways will continue to evolve and may need to be revised as data improves, standards, methodologies, metrics, and measurements mature, and legislation, regulations, and stakeholder expectations change.

Previous wording

There are utilization risks with respect to our assets.

Current wording

There are utilization risks with respect to our assets, across all business segments.

Previous wording

With respect to our Liquids Pipelines assets, we are partially exposed to throughput risk on the Canadian Mainline, and we are exposed to throughput risk under certain tolling agreements applicable to other Liquids Pipelines assets, such as the Lakehead System. A decrease in volumes transported can directly and adversely affect our revenues and earnings. Factors such as changing market fundamentals, capacity bottlenecks, regulatory restrictions, maintenance and operational incidents on our system and upstream or downstream facilities, and increased competition can all impact the utilization of our assets. Market fundamentals, such as commodity prices and price differentials, weather, gasoline prices and consumption, tariffs, alternative and new energy sources and technologies, and global supply disruptions outside of our control can impact both the supply of and demand for crude oil and other liquid hydrocarbons transported on our pipelines.

Current wording

Liquids Pipelines: We are partially exposed to throughput risk on the Canadian Mainline, and are exposed to throughput risk under certain tolling agreements for other assets, such as the Lakehead System. Lower transported volumes can directly reduce our revenues and earnings. Utilization of our assets may be affected by factors such as changing market fundamentals, capacity bottlenecks, regulatory restrictions, maintenance, operational incidents, and increased competition. Commodity prices, price differentials, weather, gasoline prices and consumption, tariffs, alternative and new energy sources and technologies, and global supply disruptions and dynamics, including those that may arise due to geopolitical conflicts, can also influence the supply of, demand for, and price of crude oil and other liquid hydrocarbons transported on our pipelines.

Previous wording

With respect to our Gas Transmission assets, gas supply and demand dynamics continue to change due to shifts in regional and global production and consumption. These shifts can lead to fluctuations in commodity prices and price differentials, which could result in our system not being fully utilized in some areas. Other factors affecting system utilization include operational incidents, regulatory restrictions, system maintenance, and increased competition.

Current wording

Gas Transmission: Shifts in regional and global production and consumption continue to affect gas supply and demand dynamics, which can lead to fluctuations in commodity prices and price differentials and potential underutilization of some parts our system. Other factors affecting system utilization include operational incidents, regulatory restrictions, system maintenance, and increased competition.

Previous wording

With respect to our Gas Distribution and Storage assets, customers of our gas distribution franchises are billed on both a fixed charge and volumetric basis and our ability to collect the total revenue requirement (the cost of providing service, including a reasonable return to the utility) in certain jurisdictions depends on achieving the forecast distribution volume established in the rate-making process. The probability of realizing such volume is contingent upon four key forecast variables: weather, economic conditions, pricing of competitive energy sources and growth in the number of customers. Weather is a significant driver of delivery volumes, given that a significant portion of our gas distribution customer base uses natural gas for space heating. Our ability to add new customers could be impacted by market conditions affecting housing activity such as interest rates, affordability levels, and energy transition. Sales and transportation service to large volume commercial and industrial customers are more susceptible to prevailing economic conditions. As well, the pricing of competitive energy sources affects volume distributed to these sectors, as some customers have the ability to switch to an alternate fuel. Even in those circumstances where we attain our respective total forecast distribution volume, our gas distribution business may not earn its expected ROE due to other forecast variables, such as fluctuations in the mix between higher- and lower-margin customers. All of our gas distribution businesses remain at risk for the actual versus forecast of large volume contract commercial and industrial volumes.

Current wording

Gas Distribution and Storage: Customers of our gas distribution franchises are billed on both a fixed charge and volumetric basis, and our ability to collect the total revenue requirement (the cost of providing service, including a reasonable return to the utility) in certain jurisdictions, depends on achieving the forecast distribution measures set during the rate-making process. The probability of realizing such measures varies by jurisdiction but is generally contingent upon four key forecast variables: weather, economic conditions, pricing of competitive energy sources, and customer growth. Weather is a significant driver of delivery volumes, as many customers use natural gas for heating. Our ability to add new customers could be impacted by housing market conditions, such as interest rates and affordability on new home construction, and energy transition trends. Large commercial and industrial volumes are more sensitive to economic conditions and fuel-switching options. Even where total forecast distribution volumes are met, we may not achieve expected ROE due to other forecast variables, such as fluctuations in the mix between higher- and lower-margin customers. All of our gas distribution businesses remain at risk for actual versus forecast of large volume contract commercial and industrial volumes.

Previous wording

With respect to our Renewable Power Generation assets, earnings from these assets are highly dependent on weather and atmospheric conditions as well as continued operational availability of these energy producing assets. While the expected energy yields for Renewable Power Generation projects are predicted using long-term historical data, wind and solar resources are subject to natural variation from year-to-year and from season-to-season. Any prolonged reduction in wind or solar resources at any of the Renewable Power Generation facilities could lead to decreased earnings and cash flows. Additionally, inefficiencies or interruptions of Renewable Power Generation facilities due to operational disturbances or outages resulting from weather conditions or other factors, could also impact earnings.

Current wording

Renewable Power Generation: Earnings from our Renewable Power Generation assets are highly dependent on weather and atmospheric conditions, as well as continued operational availability of these energy producing assets. While the expected energy yields for our projects are predicted using long-term historical data, wind and solar resources are subject to natural variation from year-to-year and from season-to-season. Any prolonged reduction in wind or solar resources at any facilities could lead to decreased earnings and cash flows. Additionally, inefficiencies or interruptions of facilities due to operational disturbances or outages resulting from weather conditions or other factors, could also impact earnings.

Previous wording

Our pipelines vary in age and were constructed over many decades. Pipelines are generally long-lived assets, and pipeline construction, including coating techniques have changed over time. Depending on the era of construction and construction techniques, some assets require more frequent inspections, which have resulted in and are expected to continue to result in increased maintenance or repair costs in the future. Any significant increase in these expenditures could adversely affect our business, operations or financial results.

Current wording

Our pipelines vary in age and were constructed over many decades. Pipelines are generally long-lived assets, and pipeline construction materials and techniques, including coating, have evolved over time. Depending on the era of construction and construction techniques, some assets require more frequent inspections, which have resulted in, and are expected to continue in the future to result in, increased maintenance and repair costs. Any significant increase in these expenditures could adversely affect our business, operations or financial results.

Previous wording

Our Liquids Pipelines business faces competition from competing carriers available to ship liquid hydrocarbons to markets in Canada, the US and internationally and from proposed pipelines that seek to access basins and markets currently served by our Liquids Pipelines. Competition among existing pipelines is based primarily on the cost of transportation, access to supply, the quality and reliability of service, contract carrier alternatives and proximity to markets. The commodities transported in our pipelines currently, or are increasingly expected to, compete with other emerging alternatives for end-users, including, but not limited to, electricity, electric batteries, biofuels, and hydrogen. Additionally, we face competition from alternative storage facilities. Our natural gas transmission and storage business competes with similar facilities that serve our supply and market areas in the transmission and storage of natural gas. The natural gas transported and distributed in our business also competes with other forms of energy available to our customers and end-users, including electricity, coal, propane, fuel oils, and renewable energy. Our Renewable Power Generation business faces competition in the procurement of long-term power purchase agreements and from other fuel sources in the markets in which we operate. 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.

Current wording

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.

Previous wording

Completion of our secured projects and maintenance programs are subject to various regulatory, operational and market risks, which may affect our ability to drive long-term growth.

Current wording

Our secured projects and maintenance programs are subject to various factors, which may affect our ability to drive long-term growth.

Previous wording

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.

Current wording

Our project execution continues to face challenges, including intense scrutiny of regulatory and environmental permit applications, politicized permitting processes, public opposition such as protests, efforts to repeal permits, and resistance to land access, which have increased construction complexity and, in certain cases, delayed project completion. Joint ventures further increase complexity and reduce our ability to control project execution.

Previous wording

Continued challenges with global supply chains have created unpredictability in materials cost and availability. Labor shortages and inflationary pressures have increased the costs of engineering and construction services. Governments in Canada and the US have enacted or proposed legislation and policies that have the potential to disrupt global and North American supply chains, which may, in turn, disrupt our project execution. They have also enacted legislation and policies relating to forced labor and child labor in supply chains which require the company to, among other things, report on the steps taken in the previous year to mitigate the risk of forced labor or child labor in our supply chain, and these requirements continue to evolve and may impact our supply chain.

Current wording

Continued challenges with global supply chains have created unpredictability in material costs and availability. Labor shortages and inflationary pressures have increased the costs of engineering and construction services. Recent and proposed legislation in Canada and the US aimed at increasing supply chain integrity, including with respect to forced labor and child labor, together with measures by us, our suppliers and governments, may impact business activities, global and North American supply chains, and our procurement processes, potentially impacting the availability or cost of goods and materials that we purchase. There is a risk that our supply chain may actually use or be alleged to have used forced labor or child labor, which could impact our reputation.

Previous wording

Other events that can delay, and have in the past delayed project completion and increased anticipated costs include contractor or supplier non-performance, extreme weather events or geological factors beyond our control.

Current wording

Other factors that can, and have in the past, delayed project completion and increased project costs include contractor or supplier non-performance, tariffs, extreme weather events and geological factors beyond our control.

Previous wording

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.

Current wording

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.

Previous wording

The potential imposition of trade tariffs by the US on imports from Canada, together with retaliatory tariffs by Canada on imports from the US, and other potential measures, including tariffs, duties, fees, economic sanctions or other trade measures, present risks to our business operations. Such measures, the nature, extent and timing of which are uncertain, could lead to increased costs for us and our customers and reduced demand for Canadian energy. The potential for such measures introduces uncertainty in North American energy markets, possibly disrupting supply chains and access to capital markets and jeopardizing our competitiveness, and could significantly impact our business. The US Government has also stated its interest in renegotiating and altering the Agreement between the United States of America, Mexico and Canada (USMCA), which could further impact the energy market and our business.

Current wording

Several of the US tariff announcements have been followed by announcements of limited exemptions and temporary pauses on implementation dates. In response to the US tariff announcements, certain governments have threatened or announced retaliatory measures against the US and/or are in the process of negotiating with the US on tariff agreements. These announcements led to significant uncertainty and market volatility throughout 2025. If maintained, such trade measures, the nature, extent and timing of which are uncertain, and the potential for escalation of trade disputes, including retaliatory measures, could lead to, among other things, worsening of macroeconomic conditions, inflationary pressures, increased construction costs, costs to maintain our assets and other costs and expenses, as well as to potential reductions in demand for US and/or Canadian energy. The measures also introduce uncertainty in North American energy and capital markets and have the potential to disrupt supply chains and access to capital markets and jeopardize our competitiveness. The US Government has also stated its interest in renegotiating and altering the USMCA, which could further impact the energy market and our business.

Previous wording

Our business is exposed to changes in market prices, including interest rates and foreign exchange rates. Our risk management policies cannot eliminate all risks and may result in material financial losses. In addition, any non-compliance with our risk management policies could adversely affect our business, operations or financial results.

Current wording

Our business is exposed to changes in market prices, including but not limited to interest rates and foreign exchange rates, which could materially impact our financial results. Our risk management policies cannot eliminate all risks and may result in material financial losses. In addition, any non-compliance with our risk management policies could adversely affect our business, operations or financial results.

Previous wording

Our use of debt financing exposes us to changes in interest rates 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. Changes in interest rates and foreign exchange rates could materially impact our financial results.

Current wording

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.

Previous wording

We use financial derivatives to manage risks associated with changes in foreign exchange rates, interest rates, commodity prices, power prices and our share price, to reduce the volatility of our cash flows. Based on our risk management policies, substantially all of our financial derivatives are associated with an underlying asset, liability and/or forecasted transaction and are not intended for speculative purposes.

Current wording

We use financial derivatives to manage risks associated with changes in foreign exchange rates, interest rates, commodity prices, and power prices, to reduce the volatility of our cash flows. Based on our risk management policies, substantially all of our financial derivatives are associated with an underlying asset, liability and/or forecasted transaction and are not intended for speculative purposes.

Previous wording

Changing expectations of stakeholders and government policies regarding sustainability, ESG, climate change, and environmental protection practices continue to evolve and diverge, and an inability to meet these requirements and expectations could erode stakeholder trust and confidence, damage our reputation, influence actions or decisions about Enbridge and industry and have negative impacts on our business, operations or financial results.

Current wording

Stakeholder expectations and government policies on sustainability, climate change, social and human capital management topics, and environmental protection continue to evolve and an inability to meet these requirements and expectations could erode stakeholder trust and investor confidence, damage our reputation, influence stakeholder actions and decisions and negatively impact our business, operations or financial results.

Previous wording

In recent years, geopolitical uncertainty, slowing Canadian economy and continuing inflationary pressures have underscored the critical need for access to secure, affordable energy. The pace and scale of the transition to a lower-emission economy may pose a risk if Enbridge diversifies either too quickly or too slowly. Similarly, unexpected shifts in energy demands, including due to climate change concerns, can impact revenue through, for example, reduced throughput volumes on our pipeline transportation systems.

Current wording

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.

Previous wording

We evaluate expansion projects, acquisitions and divestitures on an ongoing basis. Planning and investment analysis is highly dependent on accurate forecasting and the use of appropriate assumptions and to the extent that these assumptions do not materialize, financial performance may be lower or more volatile than expected. Volatility and unpredictability in the economy, both locally and globally, and changes in cost estimates, project scoping and risk assessment could result in a loss of profits. Similarly, uncertainty in market signals, such as abrupt and unexpected shifts in energy costs and demands, have impacted and may in the future impact revenue, for example, from reduced throughput volumes on our pipeline transportation systems.

Current wording

We evaluate expansion projects, acquisitions, and divestitures on an ongoing basis. Planning and investment analysis is highly dependent on accurate forecasting and the use of appropriate assumptions. If these assumptions do not materialize, financial performance may be lower or more volatile than expected. Economic volatility and unpredictability, both locally and globally, and changes in cost estimates, project scope, or risk assessment could result in reduced profitability. In addition, abrupt and unexpected shifts in energy costs and demands, have in the past, and may again in the future, negatively impact revenue, for example, from reduced throughput volumes on our pipeline systems.

Previous wording

We may encounter difficulties integrating the US Gas Utilities into our business in a successful manner, which may negatively affect the benefits we expect to obtain from the Acquisitions.

Current wording

We may encounter difficulties in successfully integrating the US Gas Utilities into our business, which may negatively affect the expected benefits from the Acquisitions.

Previous wording

The success of the Acquisitions will depend on, among other things, our ability to integrate the US Gas Utilities into our business in a manner that facilitates growth opportunities and achieves anticipated results. There is a significant degree of difficulty and management distraction inherent in the process of integrating an acquisition, including challenges integrating certain operations and functions, technologies, organizations, procedures, policies and operations, cultural differences, and the retention of key personnel. The integration may be complex and time-consuming and involve delays or additional and unforeseen expenses. The integration process and other disruptions resulting from the Acquisitions may also disrupt our ongoing business.

Current wording

In 2024, we completed the Acquisitions of the US Gas Utilities. The success of the Acquisitions will depend on, among other things, our ability to integrate the US Gas Utilities into our business effectively to achieve anticipated benefits and growth opportunities. There is a significant degree of difficulty and management distraction inherent in the process of integrating an acquisition, including challenges with integrating certain operations and functions, technologies, organizations, and policies and procedures; managing cultural differences; and retaining key personnel. The integration may be complex and time-consuming and involve delays or additional and unforeseen expenses. The integration process and other disruptions resulting from the Acquisitions may also disrupt our ongoing business.