Environmental 13 Reducing Emissions from Electricity Use First, we optimize by focusing on energy efficiency , reducing the amount of electricity that we use in both our production work and also in our offices. In 2021, we conducted energy efficiency audits at select facilities to identify opportunities for energy savings through equipment upgrades and better building management practices. This analysis covered over 30% of our global square footage across stages, studios, and offices and identified cost-saving energy efficiency opportunities across our facilities. Next, we electrify the equipment that uses the most liquid fuels, like vehicles, buildings and generators. For instance, where we can, we use electric motors because they’re more efficient and electricity is more easily decarbonized. Then, for emissions sources where optimization and electrification aren’t possible, we decarbonize what’s left by installing and purchasing renewable energy. This means matching renewable electricity to any grid-connected power that isn’t carbon-free and shifting to lower-carbon or zero-carbon fuel options when connecting to the grid isn’t possible. We look for renewable energy options in the following order of preference: 1) onsite solar+storage, 2) utility provided green tariff programs, 3) direct investment or purchase agreements for offsite wind or solar, 4) unbundled Renewable Energy Certificates. We don’t own the majority of our office and stage space – we lease them. So we’re not often able to procure renewable electricity directly. In some countries, direct renewable electricity purchasing is not available, so we purchase renewable attribute certificates in those countries. And we explore ways to bring new renewable electricity generation to regions we operate in by investing in new projects and products. Reducing Emissions from Fuel Use Fuel consumption makes up a large proportion of our Scope 1 emissions, and due to the nature of our business and operations, presents unique challenges to decarbonize. We follow our internal reduction framework above of “Optimize, Electrify and Decarbonize” to tackle these hard-to-abate emissions. Optimize fuel consumption : For corporate offices, this focuses mostly on efficient creation and capture of building heat, and on the production side, can range from optimizing the size of diesel generators or reducing how long vehicles idle. Electrify vehicles, buildings, and generators : Incorporating electric vehicles into production fleets and installing EV charging infrastructure at studios are critical to reducing emissions. Up to 70% of the fuel used by productions goes into vehicles, therefore electrifying a significant portion of the production fleet will be essential over the coming decade. Decarbonize through fuel switching : We recognize that not everything can be solved with efficiency or electrification. For these use cases, Netflix is piloting ways to transition away from heavy emitting fossil fuels towards low and zero emissions fuels like renewable diesel, sustainable aviation fuel (SAF), and green hydrogen.