Introduction Environment Social Governance Appendix About This Report ESG Data Tables SASB Index TCFD Index Resources GHG Inventory Methodology Carbon Credit Project Screening Criteria Carbon Credit Project Screening Criteria Screen 1: Competitive selection deeper understanding of the unique circumstances and conditions that surround a particular carbon credit project and how and why it came to be. Our competitive requests for proposals (RFPs) are issued widely, to over We also conduct additional screens for: local community ownership and 75 project developers, non-profits, brokers and credit retailers across direct benefit sharing; job creation and training; women and girls many project types and geographies. empowerment; biodiversity and habitat restoration and protection (e.g., Verra Climate, Community & Biodiversity certified projects); and climate resilience impacts. Screen 2: Meet core quality criteria Any credits that we purchase must meet globally recognized core quality Screen 4: Use digital tools and resources to improve visibility criteria: they must be additional, verified, based on a realistic baseline, not double counted and issued by a credible standard that has robust Where feasible, we use technology to enhance project validation and provisions in place to address permanence (the risk of reversal) and verification, such as AI-powered satellite imagery, machine learning and leakage (the risk of displacing emissions from one location to another). remote sensing analysis. We only purchase credits that have been third-party verified and registered on a trusted registry, including – Verra, Gold Standard, Climate Action Reserve and American Carbon Registry – or have demonstrated an Screen 5: Seek additional expert advice equivalent level of rigor. Netflix relies on its expert advisory group to provide additional insight and Screen 3: Deep project- level diligence and impact screening guidance on an ongoing basis across a range of key issues, including our carbon credit portfolio. This helps us identify things we may have missed. Our team then conducts due diligence on the projects and holds live interviews directly with the project developers and/or trusted project partners. This includes research on the projects, their proponents and other local stakeholders. Engaging directly with the project hosts enables a Netflix ESG Report 2022 13