42 Table of Contents Introduction & Our Approach Operating Responsibly Investing in Our People Diversity, Equity & Inclusion Environmental Sustainability Social Impact Data & Frameworks OVERVIEW EMISSIONS WATER WASTE MATERIALS SUSTAINABLE DESIGN NATURE SPOTLIGHT EMISSIONS Disney has had a long-term goal to achieve net zero Net Zero Emissions for Direct Operations greenhouse gas (GHG) emissions from our direct We are working to reduce emissions from direct TR-CL-110a.2 operations (Scope 1 and 2) since 2009, and we remain operations through a reduction hierarchy that includes: Learn more in our Data & Frameworks committed to this ambition. In alignment with the designing our built environment to reduce or avoid Intergovernmental Panel on Climate Change and the emissions; promoting energy ef昀椀ciency in our buildings Paris Climate Agreement, we have now also set and fuel ef昀椀ciency for ships and 昀氀eet vehicles; replacing quantitative and timebound absolute reduction goals for carbon intensive fuel sources with lower carbon † 2030 Emissions Goals emissions from our direct operations (Scope 1 and 2), alternatives; electrifying buildings and transportation; and absolute reduction and supplier and licensee and expanding our use of renewable electricity. To reach engagement goals for emissions from our value chain net zero, we will also invest in high-quality carbon EMISSIONS FROM OUR DIRECT (Scope 3). In calendar 2023, these goals were validated credits that help us address the emissions gap remaining OPERATIONS (SCOPE 1 & 2) by the Science Based Targets Initiative (SBTi). after we have pursued the above-mentioned levers. • Reduce absolute emissions from direct Emissions from our direct operations come primarily operations (Scope 1 & 2) by 46.2%, against from energy use in our parks and resorts, major a 昀椀scal 2019 baseline corporate campuses, and from fuel used by our cruise We follow global frameworks to measure †† • Achieve net zero emissions for direct operations ships. Emissions in our value chain come from a wide Scope 1, 2 & 3 emissions: • Purchase or produce 100% zero carbon electricity range of sources, including manufacturing of consumer GHG Protocol • Invest in natural climate solutions products, production of media content, and food and beverage operations. Learn more: EMISSIONS FROM OUR VALUE CHAIN (SCOPE 3) Like most companies setting aspirational Scope 3 • Reduce Scope 3 emissions through absolute targets, these are challenging goals, and success 2030 Environmental reduction and supplier and licensee engagement: depends on several external factors. These include Goals White Paper – Reduce absolute Scope 3 GHG emissions from actions by our suppliers to reduce their emissions, global 2023 CDP Climate purchased goods and services, capital goods, fuel- and economy-wide transitions to cleaner fuels, availability of Change Survey Response energy-related activities, upstream transportation and economically feasible solutions at scale, and consumer distribution, waste generated in operations, business behavioral changes. Industry collaboration is key to travel, employee commuting, and franchises, by a addressing some of these challenges. minimum of 27.5% against a 昀椀scal 2019 baseline – Commit that 20% of our suppliers, measured by emissions covering purchased goods and services, will have science-based targets by 2027 – Commit that 72% of our licensees, measured by emissions covering franchises, will have science-based † Our environmental goal-setting process adapts to changes in our businesses targets by 2027 and in relevant protocols that we follow. For emissions, we measure actual emissions and forecast future emissions based on information available on our business plans, secular changes, projects, process changes, and other factors. We expect to follow SBTi methodology recommendations that companies check the validity of their target projections annually, and at a minimum, reassess targets every 昀椀ve years. †† See footnote 6 on p. 71.