Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Matched 100% of estimated direct and indirect non-renewable power use with renewable energy certificates and carbon offsets.
• Offset greenhouse gas emissions associated with the majority of air travel.
• Implemented sustainable practices in offices (e.g., donating excess food, reducing paper use).

Social Achievements

• Increased diversity of workforce (though specific metrics are limited and mostly US-focused).
• Increased representation of women and underrepresented groups in original US scripted films.
• Invested in programs to build talent pipeline from underrepresented communities.
• Increased non-English language viewing in the US by 23% year-on-year.

Governance Achievements

• One-third of board members are women.
• Transparent approach to information sharing with the board.

Climate Goals & Targets

Environmental Challenges

• Indirect electricity use (from partners like AWS and Google Cloud) is difficult to directly control and reduce.
• Need to further increase diversity of workforce and storytelling.
• Government takedown demands for content in specific countries.

Mitigation Strategies

• Matching indirect energy use with renewable energy certificates and carbon offsets.
• Hiring Vernā Myers to lead inclusion strategy.
• Investing in programs to increase diversity of talent.
• Complying with government takedown demands (reporting these annually starting in 2020).

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Inclusion and Diversity
• Corporate Governance

Environmental Achievements

• Established a Sustainability Office and hired a Sustainability Officer.
• Measured and validated greenhouse gas emissions across all scopes (Scope 1, 2, and 3).
• Set a science-based target to reduce Scope 1 and 2 emissions by 46% by 2030.
• Committed to achieving net-zero emissions by the end of 2022.

Social Achievements

• Launched the Netflix Fund for Creative Equity to invest $100 million over five years in programs supporting underrepresented communities in the film and TV industries.
• Published a company inclusion report detailing diversity data and initiatives.
• Established a $150 million hardship fund to support workers in the entertainment industry affected by the COVID-19 pandemic.

Governance Achievements

• Implemented a Global Anti-Corruption Policy and provided regular compliance training.
• Maintained a Code of Ethics and provided confidential reporting channels for misconduct.

Climate Goals & Targets

Environmental Challenges

• Limited operational control over Scope 3 emissions from content production.
• Representation gaps for certain racial/ethnic groups in on-screen and behind-the-scenes roles.
• Measuring and reducing emissions from internet transmission and user devices.

Mitigation Strategies

• Collaborated with partners in the value chain to reduce emissions.
• Invested in training programs to close capacity and skill gaps.
• Joined DIMPACT initiative to measure the digital carbon footprint of video streaming.

Supply Chain Management

Responsible Procurement

• Working with data center providers to understand their energy and carbon footprint and targets.
• Collaboration with production partners to reduce emissions from content creation.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB

Third-party Assurance: EY (limited assurance of 2020 emissions)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Corporate Governance

Environmental Achievements

• Reduced Scope 1 and 2 emissions by 10% in 2021
• Secured validation of science-based target (SBT) for 46.2% absolute emissions reduction by 2030
• Piloted mobile batteries, electric vehicles, and hydrogen power units on productions, resulting in significant fuel savings and emission reductions.
• Purchased sustainable aviation fuel and renewable diesel for use in corporate aviation and productions.

Social Achievements

• Launched the Netflix Fund for Creative Equity with a $100M commitment over five years to support underrepresented creatives.
• Increased global workforce representation of women to 51.7% and US workforce representation of people from historically excluded ethnic and/or racial backgrounds to 50.5%
• Fulfilled pledge to move 2% of cash holdings ($100 million) into Black banks and Black-led financial institutions.

Governance Achievements

• Conducted a company-wide climate risk assessment.
• Hosted an ESG Investor Day with significant shareholder participation.
• Board decided to evolve to a more standard large-cap governance structure, recommending changes at the 2022 annual meeting.

Climate Goals & Targets

Environmental Challenges

• Most emissions come from companies outside of Netflix's direct operational control (Scope 3).
• Patchy access to clean energy globally.
• Clean technology solutions not yet available at the scale needed.
• Need for scaled public investment in zero-carbon economy transition.

Mitigation Strategies

• Collaboration with partners across the value chain to reduce emissions.
• Investing in renewable energy and attribute certificates.
• Piloting and scaling clean technologies (e.g., mobile batteries, EVs, hydrogen).
• Advocating for policies that support clean energy and the zero-carbon transition.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Collaboration with partners to reduce emissions and promote sustainability.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: SASB

Certifications: Null

Third-party Assurance: Ernst & Young (EY)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Halved emissions by 2030 from a 2019 baseline; brought net Scope 1, 2, and 3 emissions to zero by investing in nature-based solutions.
• Used clean technologies on over 60% of directly managed productions.
• Committed to using at least one electric vehicle (EV) on screen in all directly managed productions.

Social Achievements

• Women make up 49.6% of the workforce and have the highest representation.
• Over 50% of US employees are from one or more historically excluded ethnic and/or racial backgrounds.
• Netflix and employees donated $34 million to over 5,000 charities worldwide.

Governance Achievements

• Stockholders approved significant changes to corporate governance, including a phased declassification of the board and elimination of supermajority voting provisions.
• Evolved co-CEO compensation program for 2023, including a salary cap and performance-based bonus.
• Executives met with shareholders representing around 51% of outstanding shares to solicit feedback.

Climate Goals & Targets

Environmental Challenges

• Most carbon emissions come from productions, which are heavily fossil fuel dependent.
• Acute physical risks from wildfires, flooding, and sea level rise could threaten business continuity.
• Regulatory impacts could impose additional costs and limitations on content production and service operation.

Mitigation Strategies

• Investing in technology innovations to optimize and electrify energy use in productions.
• Conducting risk assessments and developing emergency response plans for productions.
• Partnering with industry players to develop and deploy sustainable technologies and operate efficiently with traditional energy sources.

Supply Chain Management

Responsible Procurement

• Spent ~$700 million with underrepresented suppliers in 2022.

Climate-Related Risks & Opportunities

Physical Risks

• Wildfires
• Flooding
• Sea level rise

Transition Risks

• Regulatory impacts on traditional energy sources

Opportunities

• Energy efficiency in operations
• Optimization and electrification of vehicle fleets
• Supporting sustainability-focused content

Reporting Standards

Frameworks Used: SASB, GRI, TCFD

Third-party Assurance: Ernst & Young (EY)

Environmental Metrics

ESG Focus Areas

• Climate Strategy
• Industry Collaboration
• Climate Risk
• Inclusion and Diversity
• Supporting our People
• Data Privacy and Security
• Accessibility
• Corporate Governance
• Enterprise Risk Management
• Ethics and Compliance
• Intellectual Property Protection

Environmental Achievements

• Reduced emissions by roughly half by 2030 (target)
• All scripted and directly managed productions used clean mobile power solutions to reduce diesel generator run hours
• Matched remaining emissions of 843,107 metric tons of CO2e with equivalent carbon credit retirements and 128,284 MWh of renewable energy credits in 2023

Social Achievements

• Women continue to have the highest gender representation at Netflix, and over 50% of our US employees are from one or more historically underrepresented ethnic and/or racial backgrounds.
• Invested over $41 million globally in the Netflix Fund for Creative Equity
• More than 32% of employees participated in the Netflix Employee Giving Program, supporting over 5,000 charities worldwide with $35.7 million in giving.

Governance Achievements

• Significant changes to the compensation program for our executive officers
• Adoption of Corporate Governance Guidelines, including a policy on directors’ service on other public company boards
• Adoption of a Human Rights Statement
• Update to the Netflix Code of Ethics

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to climate events (implied)
• Production-related strikes resulting in reduced production activity and emissions in 2023
• Addressing Scope 3 emissions requiring collaboration and systemic change

Mitigation Strategies

• Conduct risk assessments and develop detailed emergency response plans for productions
• Partner with industry players to evaluate, develop, and deploy new sustainable technologies
• Focus on high-impact areas of the value chain where Netflix has more direct influence (Scope 3)

Supply Chain Management

Responsible Procurement

• Netflix Supplier Code of Conduct
• Investment in diverse suppliers and Black banks

Climate-Related Risks & Opportunities

Physical Risks

• Wildfires
• Flooding
• Sea level rise

Transition Risks

• Regulatory impacts on traditional energy sources

Opportunities

• Energy efficiency in operations
• Supporting entertaining and scientifically-informed content that raises environmental awareness
• Optimization and electrification of vehicle fleets

Reporting Standards

Frameworks Used: SASB, GRI, TCFD

Third-party Assurance: Ernst & Young LLP (EY)

Awards & Recognition

• Clio Award
• Cannes Lions Silver