Company: MTZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000015615-25-000021
Chunk: 738

Company: MASTEC INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1
Chunk 738
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practices with respect to climate and/or ESG-related matters, we could suffer reputational risk or an increase in our cost of, or a reduction in the availability of, capital.

U.S. and international regulators, investors and other stakeholders are increasingly focused on ESG matters.  For example, new domestic and international laws and regulations relating to ESG matters, including environmental sustainability, climate change, human rights and human capital management have been adopted or are under consideration, some of which include specific, target-driven disclosure requirements or obligations.  ESG-related reporting and compliance requirements have increased our costs, including from increased investment in technology, implementation of new reporting processes and appropriate expertise.  The above described effects of new regulations as well as exposure to the risk of non-compliance and potential diversion of operational and/or management attention, among others, could negatively affect our business, results of operations and cash flows.  Environmental regulations and policies to encourage the use of clean energy technologies and regulate emissions of greenhouse gases to address climate change could cause uncertainty for our customers and our operations.  In addition, the new presidential administration, combined with Republican Party majorities in both the U.S. House of Representatives and Senate has created regulatory uncertainty with respect to climate change policy.  For example, on January 20, 2025, President Trump signed an executive order to withdraw the United States from United Nations (“U.N.”) Framework Convention on Climate Change, marking a significant shift in U.S. climate policy.  It remains unclear what further actions the federal government may take with respect to domestic and international regulations, programs and initiatives that could affect demand for or the economic viability of renewable energy infrastructure.

We cannot predict future changes to environmental regulations and policies, nor can we predict the effects that any such changes would have on our business.  The establishment of rules limiting greenhouse gas emissions or mandating lower carbon infrastructure could affect overall customer demand, reduce the need for certain of our services and/or affect our ability to perform construction services or to perform these services at current levels of profitability.  For example, if new regulations were adopted regulating greenhouse gas emissions, or if we were otherwise required to undertake carbon emission reduction efforts, we could experience a significant increase in environmental compliance costs considering our large fleet and the amount of construction machinery we own.  New regulations requiring us to acquire different equipment or change processes could result in an impairment of our current fleet or other equipment assets.  Additionally, such new equipment may not be available, or we may not be able to purchase or rent this