Leaders League: How has the energy crisis impacted Dow’s legal operations in the countries that you are covering? 

Francisco Castillo: The energy crisis is impacting everyone: from people and households to companies across all market segments. This is particularly true for industrial companies with significant manufacturing sites. The impact, however, differs from one country to another, depending on the power supply connections, so as link of each country with the current restrictions arising out of the conflict in Ukraine region. In such a complex international environment, legal support continues to be key in the analysis of the best ways in which companies can effectively and efficiently adapt to a changing environment to safeguard operations.

Leaders League: What has been the biggest challenge for the legal department over this last year?

Francisco Castillo: Managing sanctions against Russia and their impact in neighboring countries has been an interesting challenge. Understanding the complexity of such regulation, while also analyzing the nexus with each and every block of sanctions, has implied intense work and coordination. This is true for both internal and external activity, involving outside counsel in diverse jurisdictions.

Managing sanctions against Russia and their impact in neighboring countries has been an interesting challenge.

Leaders League: How is Dow responding to Ukraine crisis?

Francisco Castillo: This is a big question and certainly the way Dow has responded to the crisis in Ukraine goes beyond the legal department. From the beginning, our top priority has always been people. In this regard, we have implemented diverse initiatives. We have found ways to help Ukrainian refugees and contributed to a strong donations campaign. Internally, since the beginning of the crisis, we improved communication with all employees affected by the situation and have made as much as possible to accommodate working and personal conditions, identifying safe locations for each employee, so as offering alternatives to prioritize safety. We applaud the incredible effort and contribution of our team in Ukraine as well as the law firms we work with in such crucial circumstances.  

Leaders League: Dow is celebrating its 125-year anniversary in a time of uncertainty.  What are the milestones achieved and plans?

Francisco Castillo: Dow has continued to deliver solid performance and sound financials despite of the complex environment. Fortunately, the diversified portfolio and business contribute to balance and mitigate the risks in the time of crisis, either arising out of regional or market constraints. Dow foundation slogan by Herbert H. Dow remains in place today (“if can do it better, you should try..”). We remain focused on our customer needs and scientific innovation. Health, safety, environment protection and sustainability shall remain as pillars of our activity and the key milestones achieved last years. 

Our top priority has always been people.

Leaders League: How is the role of in-house legal evolving?  

Francisco Castillo: In the context of stressful and changing environments like the one we live in today our role is especially relevant. Particularly in the case of Dow, legal is key to ensure the company is fully compliant with all applicable regulations and avoid any risk of infringement in the different applicable areas, while the company seeks to become the most innovative, customer-centric, inclusive and sustainable materials science company in the world. As the business, economic and political world continues to evolve, the role of legal will become more relevant every day.