Introduction Environment Social Governance Appendix Sustainability Strategy Sustainability in Our Operations and Value Chain Netting Remaining Emissions to Zero Sustainability in Storytelling Climate Risk by climate science. But per the science (Intergovernmental Panel 25 on Climate Change , Nature), this needs to be done in parallel and Netting Remaining 26 cannot come later . Emissions to Zero Short film by the makers of Our Great National Parks on how carbon credits work, illustrated using Netflix’s contribution to a Kenyan To supplement our decarbonization work, we delivered on our forest conservation project next to promise to net all remaining emissions to zero, across all three Tsavo National Park (episode 3) scopes, in 2022. We did this by investing in nature to retain and remove carbon (nature-based carbon credits) and match remaining electricity use to like-for-like renewable energy credits. Our 2022 carbon credit portfolio spans four continents, six countries, and 25+ on-the-ground partners, with 100% third-party certification for carbon measurement. Netflix does extensive due diligence before including a project in our portfolio, using a rigorous Nature-Based Carbon Credits five step evaluation process to select the highest quality credits, all of which need to demonstrate their value beyond the carbon, including social impact, community and biodiversity benefits. We We align with the latest guidance from nine research, NGO and review transparency and integrity work from groups like VCMI and multilateral government institutions who conclude that, “in ICV-CM, and stay abreast of methodologies from third party credit addition to cutting greenhouse gas emissions in company standards bodies to continually refine our vetting process. operations and across value chains, to help get the world on track for halving global emissions by 2030, all companies need to invest Nature-based projects make up 64% of our portfolio because of in protecting, managing and restoring nature, for example by their ecosystem benefits and potential to bring economic value to buying high-quality nature-based carbon credits.” Relative to our the region, including indigenous people or those disproportionately work to decarbonize, purchasing carbon credits comes only after affected by climate change. we have made efforts to reduce emissions at the speed prescribed 25 All scenarios developed by the IPCC that limit climate change to 1.5°C rely on increasing the ghg sequestration potential of nature coupled with the avoidance of further Netflix ESG Report 2022 28 damage to soils, forests, peatlands, wetlands, oceans and other critical biodiverse sinks - IPCC (2022) Climate Change 2022: Mitigation of Climate Change. 26 A We Mean Business coalition study showed that if the world’s 1,700 biggest emitters compensated each year for just 10% of the emissions they have not yet cut, through investments in nature, it would mitigate nearly 30 gigatons of emissions and mobilize up to $1 trillion in climate finance by 2030.