Environmental 11 Data Centers We work with Amazon Web Services (AWS) for our data storage needs. AWS has set a goal of being 100% renewable by 2025 and we work with them on measuring and reporting the emissions associated with the services they provide us. AWS purchases and provides renewable electricity to us and provides attestations regarding their energy attributes. We also invest in the efficient distribution of our content through our Open Connect appliances, which we make freely available to Internet Service Providers. Internet Transmission & User Device Energy Use Not included in our Scope 3 boundary are emissions from the internet transmission or electronic devices our members use to watch Netflix, like an Apple tablet, Android phone, or Samsung television. GHG accounting guidance does not yet exist for streaming companies on this topic. Current best practice is for the Internet Service Providers and device manufacturers to account for those emissions within their target boundaries, because they have operational control over the design and manufacturing of their equipment 12 . While these emissions don’t fall within our company footprint, we’ve joined with other companies to measure them through DIMPACT , a collaborative research initiative. Led by researchers at the University of Bristol, DIMPACT created a tool to calculate the carbon footprint of streaming and other everyday internet uses, such as browsing news stories. Through DIMPACT, we worked with peers and academic and industry experts to commission a white paper with well-regarded think tank Carbon Trust to correct inaccurate information about streaming emissions. Results of this study indicate that one hour of streaming in Europe emits ~55gCO2 per hour. To be conservative, Netflix uses its own estimate of “well below 100gCO2e per hour” as a ceiling value 13 that encompasses TVs and other viewing devices, home routers, internet infrastructure, and data centers 14 . In comparison, “the emissions from microwaving a bag of popcorn for four minutes is about 16gCO2e (also using a European average grid emission factor), while driving 100 meters in an average petrol car emits around 22gCO2e.” 15 The tool’s validation by Carbon Trust brings us closer to accurately assessing streaming’s impact on climate - whether it’s from the data centers, Internet Providers, or device manufacturers, and entertainment and media companies who rely on streaming. Better understanding this footprint means we can better reduce emissions across industries, countries and the world. 12 Per the GHG Protocol, the most common method by which to allocate emissions to one company or another is called “operational control method” (page 18 of the Protocol). 13 Another highly regarded report from the IEA cites a 36gCO2 per hour figure, which is less than the Carbon Trust white paper and significantly less than Netflix’s conservative estimate. 14 Location and device choices also determine the hourly footprint itself within the <100gCO2e/hour range. The sources of the household’s and infrastructure’s electricity are the main variables. To be conservative, our calculations do not take account for regions where hourly emissions are lower due to partial or full renewable energy usage from the grid. 15 Carbon Trust whitepaper, page 8.