Introduction Environment Social Governance Appendix Sustainability Strategy Sustainability in Our Operations and Value Chain Netting Remaining Emissions to Zero Sustainability in Storytelling Climate Risk CARBON FOOTPRINT COMPONENTS Emissions Reductions Over half of our emissions (all scopes) are related to the TRACKING PROGRESS AGAINST OUR 2030 production and licensing of films, series and games SCIENCE-BASED TARGET (“production”). The second largest source of emissions is in We track progress against our Scope 1 and 2 emissions target using our corporate operations (“corporate”), followed by our data target-based emissions figures noted in the carbon footprint table center providers (“streaming”). above. Target-based emissions only account for emissions reductions resulting from specific decarbonization actions and those 3% related to direct renewable energy supply (e.g., onsite generation, utility and landlord supply, power purchase agreements or direct investments), but not for emissions reductions resulting from our annual purchase of renewable energy certificates (or environmental attribute certificates). 15 ● 2022 Scope 1 and 2 emissions are 12% lower year-over- year, though they remain slightly higher than our 2019 38% Netflix’s 2022 Streaming baseline year due to growth in the business. Carbon Footprint ● The combined impact of our emissions reductions initiatives by Business Production across our four priority levers in 2022 resulted in a 30% Activity 59% Corporate lower Scope 1 and 2 footprint value than would have otherwise been reported. ● The vast majority of our emission reductions still come from renewable energy and renewable fuels. Transitioning from diesel to electric will take time to scale to a level that will have a measurable impact on emissions reductions. 15 In addition to emissions reductions from our decarbonization efforts, external factors also influence the calculated emissions total, including data improvements (e.g., improved data quality, updated emissions factors) Netflix ESG Report 2022 17 and changes in core business activities from year to year (e.g., number of self-managed vs. partner-managed productions which can shift the emissions representation between Scopes).
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