12 Environmental The Optimize, Electrify, Decarbonize Framework We’re encouraged by Apple, Microsoft, Sony and others’ commitments to tackle their devices’ emissions during use, and are encouraging others to follow their example. In 2021, we engaged 6 additional global manufacturers to raise their awareness and encourage action. Recent efforts made by Amazon to quantify and reduce device emissions through efficiency measures and lifecycle assessments are particularly inspiring. And DIMPACT has expanded to include a device manufacturers working group, a response to the Carbon Trust white paper’s finding that viewing devices are responsible for more than 50% of the overall carbon footprint of streaming for the average consumer. NET ZERO 16 + NATURE: PLANNING AND PROGRESS Last March, we committed to reducing our emissions in line with the latest climate science, ensuring our internal reductions align with a trajectory of no more than 1.5°C of warming. Our main sources of internal emissions from our productions, corporate offices, travel, and streaming can be boiled down to two basic categories: fuel we burn and electricity we consume. This includes electricity generated by fossil fuels, as well as the direct combustion of fossil fuels to heat buildings, on-set power generators, and for transportation. To achieve our internal reductions, we’re focused on solutions most relevant to the entertainment industry “Optimize, Electrify, Decarbonize” strategy. 16 Guidance for corporate net zero claims is still under development and evolving rapidly. In 2021, the SBTi issued guidance for long-term corporate net zero, and a variety of other net zero guidance initiatives (e.g. SBTi, VCMI, Carbon Trust, etc) are underway but have not concluded their work. There is no guidance yet for companies with near-term net zero targets or guidance on the use of carbon credits towards net zero claims. We remain committed to evaluating each of the emerging standards based upon the best science available.