October 29, 2021
JGC Holdings Corporation
Yokogawa Electric Corporation

Conducting a Demonstration Experiment of a Token System to Visualize Behavioral
Characteristics of Plant Construction Workers～Using blockchain and behavioral economics to create a highly motivated construction
site

Yokohama, Japan－JGC Holdings Corporation (Representative Director, Chairman
and Chief Executive Officer: Masayuki Sato) hereinafter "JGC HD " and Yokogawa
Electric Corporation (President and CEO: Hitoshi Nara), hereinafter "Yokogawa
Electric" announces that they have conducted a demonstration experiment tovisualize the behavioral characteristics of workers at construction sites in Japan
where JGC Japan Corporation (hereinafter "JJPN"), a group company of JGC HD
which is carrying out construction work and improved their motivation by using atoken system based on blockchain and behavioral economics.

At large-scale plant construction sites, a large number of workers from various
occupations, such as civil engineering, architecture, electricity, and instrumentation, aredispatched from multiple companies to work on construction projects, and it is achallenge to share the workers' sense of purpose and promote voluntary actions toimprove work efficiency and construction safety.
From February to July 2021, JGC HD and Yokogawa Electric introduced a trial system
to visualize the behavior of on-site workers and promote positive behavior in a biomass
power plant construction project being carried out by JJPN in Ishinomaki City, Miyagi
Prefecture.
In implementing the system, the companies defined three desirable behavioral
characteristics: "teamwork," "emphasis on safety," and "cheerful behavior”. The
companies built a system in which supervisors gave tokens*1 to field workers who
demonstrated these behavioral characteristics, and visualized the route and frequency
of communication between field workers and supervisors. The design of the system wasbased on behavioral economics*2 and incorporated psychological effects such as positive
encouragement and commendation from the supervisor. In addition, blockchaintechnology was used to record the granting of tokens to prevent tampering and make itpossible to track the history of granting them to each worker.
Since the beginning of 2020, the spread of the new coronavirus infection in Japan has
restricted the activities of the "Iifureai Campaign "*3 that JJPN has been conducting atconstruction sites in Japan. The token systemwas highly evaluated at the sites where it
was introduced, as it promoted communication between site workers and supervisors aswell as between site workers while maintaining a certain distance. In addition, according
to the results of a questionnaire survey conducted after the experiment, about 60% of thefield workers answered that the application had led them to voluntarily take positive
actions, and about 70% of the supervisors answered that it had brought about positivechanges in the construction site. In the interviews at the construction sites, some workers
said that both psychological and financial rewards motivated them to work harder, andthat the increased communication between supervisors and workers reduced thepsychological distance between them and facilitated the communication of work orders.
After the completion of this experiment, the two companies will continue to operate
this system at the construction site to verify its effectiveness, and are also considering
expanding the system to other JGC Group construction sites in Japan and overseas, aswell as maintenance work sites. In addition to the development of this system the twocompanies will promote open innovation with other companies, aiming to put into
practical use solutions to create a rewarding and productive work environment, such as
the introduction of more advanced human and objective measurement technologies andlinkage with external systems.
JGC HD is currently promoting the IT Grand Plan 2030 and strengthening its EPC
execution capabilities through the use of digital technology, with the aim of realizing thekey strategy of its medium-term management plan, "further deepening the EPCbusiness”. In addition, the company will continue to anticipate future trends in digitaltechnology and aim to transform our EPC business through upfront investment in such
advanced technology.
Yokogawa Electric has set the realization of well-being as one of its "Three goals" forsustainability. By utilizing digital technology and co-creating value with the company
customers and partners, the company will contribute to the improvement of people'ssafety and health, and to the realization of a work environment where people can fully
demonstrate their abilities.

Supervisors give tokens to field workers for positive behavior.

1:This refers to the value used in place of conventional money, and in this verification
experiment, it refers to a unique type of point issued using blockchain technology.

2:

An academic system of analysis that focuses on the irrational behavior of humans that is
actually observed, rather than the rational individuals that conventional economics
assumes. It deals with methodologies for considering barriers and facilitators of various
behaviors, using findings from psychology and neuroscience. In this empirical experiment,
we focused on psychological phenomena such as hyperbolic discounting, cognitive saving,
and framing effects, among others.

3:

A generic term for a range of activities designed to create a safe and secure work
environment by building strong human relationships among workers at the work site andJGC HD Group employees, based on the slogan "All people work with health and peace ofmind and return safely to their families”.

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