What are the most significant cases, projects or transactions that you or your legal team have recently been involved in?

As a part of Air Liquide group, a world leader in industrial gasses, our company makes deep contributions to the development of various industries for energy transition, and our team has been dedicated to several significant transactions, deals and projects for such contributions. A few remarkable examples are: the project related to a significant investment for our new Air Separation Unit in Naoshima, supporting the production ramp-up of one of our valuable customers; and the project related to our oxygen combustion technology introduction by one of our valuable customers, which helps streamlining their production and reducing the carbon footprint.

How do you approach managing legal aspects during periods of instability or crisis to ensure the organisation’s resilience?

My approach prioritises proactive legal planning and risk assessment, including scenario analysis, contract reviews, and BCP integration. During a crisis, the legal team actively participates, providing rapid assessments, managing communication, and addressing data protection concerns. We focus on navigating contractual issues (such as force majeure), dispute resolution, and financial stability. Crucially, we monitor regulatory changes and ensure compliance. Post-crisis, we conduct reviews to learn and update policies. Key principles include being proactive, collaborative, pragmatic, ethical, and adaptable to ensure the organisation’s legal resilience and business continuity.

What factors influence your team’s decision to use external legal services versus handling matters in-house, and what criteria are used to evaluate their performance?

Our decision to use external legal services hinges on several factors. Complexity and Specialisation are key; highly specialised areas like cross-border M&A or novel regulatory issues often require external expertise. Workload and Capacity also matter; peak periods or large-scale projects may necessitate external support. Strategic Importance and Risk Exposure can also influence the decision, with high-stakes matters often benefiting from external perspectives. On the other hand, we typically handle legal matters in-house, leveraging our deep understanding of the company’s business operations, culture, and risk tolerance, such as contract review/negotiation or pre-litigation negotiation.

We evaluate external counsel based on expertise and track record in the relevant area, cost-effectiveness (including fee structure and budget adherence), communication and responsiveness, understanding of our business and culture, and results achieved. Regular feedback and performance reviews ensure alignment with our objectives and quality standards.

Looking forward, what trends do you foresee in the legal landscape over the next five to ten years that companies should prepare for?

Japanese companies will face increasing legal and regulatory pressures over the next five to ten years. We anticipate stricter regulations on carbon emissions, potentially including carbon taxes and mandatory reporting aligned with international frameworks. The push for a circular economy may also likely lead to new laws on waste reduction, product lifecycle management, and extended producer responsibility.

Supply chain due diligence regarding human rights and environmental impact will become more crucial in Japan, potentially mirroring international legislation. Investors and stakeholders will demand greater transparency and accountability through enhanced ESG reporting standards. We should prepare for evolving regulations, invest in sustainable practices, and strengthen the ESG compliance frameworks to mitigate risks and enhance long-term value.