Netflix Environmental Social Governance Report 2021

Entertaining (and preserving) the world

Netflix entertains the world with best-in-class stories across a wide variety of different genres, and in more than 30 languages and 190 countries. Last year, the company unveiled their climate commitment prioritizing environmental sustainability. Since then, they’ve worked to embed sustainability and minimization of their carbon footprint into every aspect of the company — from their more than 30 offices worldwide to their production of films, documentaries, and series. In the company’s third annual Environmental Social Governance Report, Netflix outlines both their achieved emission reduction and current challenges they face.

Netflix exists to entertain the world, and that requires a habitable world to entertain.To deliver on reduced greenhouse gas emissions, Netflix made the following progress in 2021: worked with their utilities, landlords, and streaming partners to switch to renewable electricity, swapped in renewable diesel on their productions, trialed EVs, replaced diesel generators with mobile batteries or hydrogen power units, and bought sustainable aviation fuel.

 

In 2021, Netflix designed a 2030 decarbonization roadmap that includes setting milestones for internal decarbonization as part of their low carbon transition planning process.

 

They conducted a company-wide climate risk assessment, led by their Internal Audit and Sustainability teams.

 

Over half of Netflix’s footprint lies within the physical production of Netflix-branded content (productions), followed by their corporate operations and purchased goods (corporate), followed by their data center providers (streaming).

 

To achieve their internal reductions, Netflix’s strategy, “Optimize, Electrify, Decarbonize”, focuses on solutions most relevant to the entertainment industry.

 

The first step, Optimize, aims to reduce the amount of electricity used in both production work and offices. Next, they aim to Electrify the equipment that uses the most liquid fuels, like vehicles, buildings and generators. For emissions sources where optimization and electrification aren’t possible, they Decarbonize what’s left by installing and purchasing renewable energy.

 

Netflix doesn’t own the majority of their office and stage space (they lease them), so they aren’t often able to procure renewable electricity directly — instead, they purchase renewable attribute certificates in countries where direct renewable energy purchasing is not available.

 

Up to 70% of the fuel used by productions goes into vehicles. The company successfully piloted 17 mobile batteries, 70+ electric, plug-in hybrid and hybrid vehicles, and one hydrogen power unit across 13 productions in 2021.

In 2021, Netflix purchased 40,000 gallons of Sustainable Aviation Fuel for their corporate aviation fleet and over 75,000 gallons of renewable diesel for use on productions.

 

In the same year, the company procured renewable electricity and certificates in an amount equal to all of their Scope 2 emissions.

 

Based upon five carbon credit project screening criteria, 17 of Netflix’s projects were selected for their 2021 carbon credit portfolio — 73% of the credits by volume have received an additional certification under Verra’s Climate, Community, & Biodiversity program.

 

In 2021, Netflix supported and streamed Don’t Look Up. The cautionary tale about climate inaction became their second most popular film of all time, driving nearly 360M viewing hours in its first 28 days on the service. The film also sparked extensive conversation online and in the media.

 

In June, the company released Breaking Boundaries by Silverback Studios, in which globally recognized scientist Dr. Johan Rockstrom and Sir David Attenborough lay out several fast-approaching tipping points to ecological collapse but also the signs that a green revolution may be reaching tipping points of its own.

 

In 2021, Netflix co-founded the Sustainable Aviation Buyers Alliance, earning public mention by the U.S. White House, and launched the Business Alliance for Scaling Climate Solutions in partnership with other leading companies.

 

The company also released its first Sustainability Collection of titles in partnership with the COP26 Presidency (the UK government).

14,000+ MT

of greenhouse gas emissions reduced or avoided in 2021

Matched 100%

renewable electricity in 2021, including all offices and self-managed productions

Netflix exists to entertain the world, and that requires a habitable world to entertain.

Netflix acknowledges that the road to deep decarbonization and impactful sustainability is a long one — and their recent progress from 2021 has brought them a step closer to their goal. From evaluating their production’s footprint to supporting filmmakers who tell stories about sustainability, Netflix continues to shine a light internally and externally for a brighter future.

 

In 2021, based on their key sources of emissions, the company put together a plan and decarbonization roadmap to reduce emissions that put them on a path to delivering on their science-based target by 2030. The strategy includes (but isn’t limited to) procuring renewable energy, deploying electric vehicles, and replacing diesel generators. One of the major challenges Netflix faces is limited access to clean, 100% renewable energy globally and within the U.S. The company is an active supporter of public policy for sustainability and looks forward to more collaboration and progress in the years to come.

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40,000 gallons

of Sustainable Aviation Fuel purchased for their corporate aviation fleet

70

electric, plug-in hybrid, and hybrid vehicles piloted in 2021

The science is clear: stabilizing the climate at 1.5°C and investing in nature will help ensure a habitable world for generations to come. We are acting on that science … and while we have much more work to do, we’ve made promising strides in 2021.