Introduction Environment Social Governance Appendix Sustainability Strategy Sustainability in Our Operations and Value Chain Netting Remaining Emissions to Zero Sustainability in Storytelling Climate Risk INTERNET TRANSMISSION AND USER DEVICE ENERGY USE Because internet infrastructure (including data centers) are so Based on globally accepted greenhouse gas accounting 24 widely shared by so many consumers across so many services, the standards , internet- and device-related emissions fall outside energy consumption of this infrastructure for individual video of the formal carbon footprint boundary for Netflix. Even so, we still streams is relatively efficient (i.e., ~10% of total use-phase think it is important for us to contribute to industry-wide streaming emissions). By contrast, the physical devices used by decarbonization efforts. our members (wifi routers, streaming sticks, set top boxes, and displays) drive the most energy consumption and emissions Through our participation in DIMPACT, we collaborate with Internet (~89%). Even so, the total carbon footprint of streaming one hour Service Providers (ISPs), device manufacturers, and academic and of video is approximately 55 gCO2e (grams of carbon dioxide industry experts to stay up-to-date on the latest research about 22 equivalents). This equates roughly to the emissions associated digital service emissions and contribute to cross-sector policy with microwaving four bags of popcorn, or three boils in an suggestions that will help decarbonize video streaming globally. 23 electric kettle . We’ve summarized the main takeaways here. Additionally, we are part of the DIMPACT Device Manufacturers Data Center Operators Device Manufacturers Internet Service Providers working group, where we support research related to device energy 1% 89% 10% efficiency. We are also encouraged by work with the Carbon Trust, in collaboration with companies like Amazon, Meta, Microsoft, Samsung and Sky, to tackle the emissions of connected devices. 22 Based on UK emissions factors, because these comparisons vary by country depending on the carbon Electric Utilities intensity of the user's national grid. 23 100% of this value chain relies on electricity The True Climate Impact of Streaming 24 Per the Greenhouse Gas Protocol and also validated by our auditors, indirect use-phase emissions are optional to include. The Science Based Target Initiative (SBTi) also specifies that internet- and device-related Netflix ESG Report 2022 27 emissions are indirect use phase emissions for software and telecommunication services, therefore optional to include in our footprint and target (Target Validation Protocol for Near-term Targets, Version 3.1, pg. 51).