19 Environmental Table 3: Carbon Credit Project Screening Criteria Screen 1: Competitive selection Screen 4: Use digital tools and resources to improve visibility Screen 5: Seek additional expert advice Screen 3: Deep project- level diligence and impact screening Screen 2: Meet core quality criteria Our competitive requests for proposals (RFPs) are issued widely, to over 75 project developers, non-profits, brokers, and credit retailers across many project types and geographies. Our team then conducts due diligence on the projects and holds live interviews directly with the project developers and/or trusted project partners. This includes research on the projects, their proponents, and other local stakeholders. Engaging directly with the project hosts enables a deeper understanding of the unique circumstances and conditions that surround a particular carbon credit project and how and why it came to be. We also conduct additional screens for: local community ownership and direct benefit sharing; job creation and training; women and girls empowerment; biodiversity and habitat restoration and protection (e.g. Verra Climate, Community & Biodiversity certified projects); and climate resilience impacts. Where feasible, we use technology to enhance project validation and verification, such as AI-powered satellite imagery, machine learning and remote sensing analysis. Netflix relies on its expert advisory group to provide additional insight and guidance on an ongoing basis across a range of key issues, including our carbon credit portfolio. This helps us identify things we may have missed. Any credits that we purchase must meet globally recognized core quality criteria: they must be additional, verified, based on a realistic baseline, not double counted, and issued by a credible standard that has robust provisions in place to address permanence (the risk of reversal) and leakage (the risk of displacing emissions from one location to another). We only purchase credits that have been third-party verified and registered on a trusted registry, including – Verra, Gold Standard, Climate Action Reserve, and American Carbon Registry-or have demonstrated an equivalent level of rigor. Based upon these five screens, the following 17 projects were selected for our 2021 carbon credit portfolio. Seventy-three percent of the credits by volume have received an additional certification under Verra’s Climate, Community & Biodiversity program, meaning they are exemplars of maximizing benefits in addition to climate, like habitat restoration, biodiversity protection and sustainable livelihoods. We have highlighted three projects below that showcase the impacts and benefits that these projects can deliver.