10 Environmental 10 All emission factors are applied to the data and updated annually to reflect the latest guidance and factors published by EPA eGRID2019 (EPA, 2021) and The Climate Registry (TCR, 2021). In some cases, where data may not be available or of sufficient quality, Netflix will use proxy data, industry-average figures or rely on experts. In such instances, we use third-parties for reliability and completeness. 11 The boundary was established in alignment with the GHG Protocol Corporate and Scope 3 Standards. Footprint Components —Netflix is an entertainment company. Over half of our footprint lies within the physical production of our Netflix-branded content (“content”), followed by our corporate operations and purchased goods (“corporate”), followed by our data center providers (“streaming”). Netflix’s 2021 company carbon footprint by business activity Methodology: How we calculate our footprint —All GHGs covered by the Kyoto Protocol (Annex A) relevant to Netflix are accounted for and converted into metric tons of carbon dioxide equivalents (MTCO2e) as specified by the GHG Protocol (GHG Protocol, 2004) 10 . Data —We keep our various data sources in different formats. To improve our GHG data management, we have implemented a process to collect any business activity data and continue to improve on these methods. There are certain categories of documents that are to be retained by specific groups within Netflix, following our Practices and Policies. Our Footprint Boundary Our footprint includes all Scope 1 (direct) and Scope 2 (indirect emissions) as well as relevant 11 Scope 3 categories, which therefore includes activities outside of our operational control. This means that we include all Netflix-branded content production, whether we manage the production directly (like Don’t Look Up ), or through a third-party production company (like Holiday in the Wild, Our Planet, Bill Nye Saves the World , or You vs. Wild ) as well as all content that we license that is Netflix-branded (like The Boy Who Harnessed the Wind, My Octopus Teacher , or Breaking Boundaries ). Activities outside of our operational control present challenges to measuring and reducing emissions, but we believe including the emissions from Netflix-branded content (wherever it is produced) will create a positive ripple effect across the industry. Engaging these groups requires a significant investment in collaboration across our value chain that can be resource-intensive, but we think this ultimately strengthens Netflix’s business network. STREAMING 5% CORPORATE 37% CONTENT 58%