Enbridge Inc

Business Overview

The company's operations involve various segments, including Liquids Pipelines, Gas Transmission, and Gas Distribution and Storage. The company's revenues and earnings can be directly reduced by lower transported volumes on assets like the Canadian Mainline and the Lakehead System. The company's services and assets are subject to risks from evolving regulations, shifts in energy demand, and market uncertainty concerning commodity prices.

Regulation - Environmental Regulation . Carbon pricing in the form of carbon charges, carbon levies, or other carbon pricing frameworks poses risks to our business, including potential reduced demand for our services and decreased economic viability for our projects. We are also subject to anti-greenwashing legislation and are impacted by climate-related disclosure requirements in development in certain jurisdictions where we operate. Such evolving policy, legislation and regulation could influence commodity demand, and the overall energy mix we deliver and has already led to increased compliance risk and costs, including higher costs for our customers. Stakeholder opposition to parts of our business and the energy industry, particularly fossil fuels, continues to pose risks to our business such as climate-related protests, complaints, litigation and regulatory actions, including against Enbridge. In addition, anti-ESG activism has grown, creating competing stakeholder priorities, fragmented regulatory regimes, and greater uncertainty. We have faced, and expect to continue to face, climate-related legal challenges. Defending and resolving these claims has resulted in increased costs and will likely lead to additional expenses, and could affect our reputation, strategy, and financial performance. 47

• Technology risks Achieving our emissions reduction goals depends partly on technological improvements, innovation, and modernization of our existing assets. Advances in technologies such as renewable power, carbon capture and storage, and other lower-carbon energy infrastructure can help reduce our emissions, extend the life of our assets, and diversify our business. However, relying on these technologies also carries risks, including the pace of technological development, uncertain regulatory requirements, and potentially high costs that could make the use of such technologies uneconomical. If emerging technologies do not materialize as expected, meeting our emissions reduction goals could become more difficult. • Market risks 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. • Reputational risks Energy companies, including Enbridge, continue to face negative perceptions about fossil fuels and pipelines, which can lead to stakeholder opposition to our operations and infrastructure projects, as well as investor, stakeholder or regulatory concerns about stranded assets. Such factors may impact our ability to secure capital or complete new projects. Enbridge’s climate-related activities, goals, commitments, and plans are based on various assumptions, estimates, judgments, risks, and uncertainties.

Company Facts

Risk Flags

• High debt-to-equity: 2.45
• Current ratio below 1: 0.63

Key Questions