Netflix Presses Play On Its Net Zero Strategy

At a Glance

Netflix committed to achieving Net Zero greenhouse gas emissions by the end of 2022.
Based on proven levers, scales and enablers, they designed and launched its sustainability strategy and carbon neutrality commitment.
They created their sustainability strategy around 3 Rs: Reduce, Retain and Remove.

The United Nations climate science panel has said that global emissions must reduce by 45% by 2030 — and by 90% by mid-century — in order to limit global warming to 2 degrees Celsius above pre-industrial times. Netflix has joined this effort with the announcement of its climate strategy aligned with science-based targets.

Enabling the Net Zero Transformation

On March 30, 2021, Netflix committed to achieving Net Zero greenhouse gas emissions by the end of 2022. The company hopes to influence the industry by implementing its sustainability strategy on an accelerated timeline. Netflix also wants to bring its audience along on its ambitious journey, communicating clearly about its science-based strategy and providing insight into complex topics such as the carbon impact of streaming. Netflix is building a strong internal team focused on setting strategy and ambition, green energy transition, and leveraging carbon offsetting.

Three fundamental dimensions can help any organization map out and make rapid progress toward its Net Zero transformation. They are:

The decarbonization levers companies deploy, the scales at which companies transform operations, and the enablers that serve as the foundation for unlocking opportunities and accelerating decarbonization. 

Behind the scenes at Netflix

ENGIE Impact has supported Netflix in the design and launch of its inaugural sustainability strategy and carbon neutrality commitment. Here’s how Netflix's journey can be mapped to the three dimensions needed to deliver Net Zero.

Scales

Recognizing that half of Netflix’s footprint sits within the physical production of the content, the company is prioritizing its decarbonization efforts on its content production and operational sites. This encompasses its facilities, where it has master lease agreements, and where it can influence corporate office leases.

Levers

With the scale defined, Netflix is implementing a range of decarbonization levers. It is optimizing energy efficiency, replacing fossil fuel energy sources with electric power and purchasing 100% renewable energy in its operations. For the remaining emissions, it has adopted a high-quality approach to offsetting, both conserving at-risk natural areas and removing carbon from the atmosphere by investing in the regeneration of natural ecosystems.

Enablers

Netflix is bringing together coalitions of industry peers, nonprofits, and other stakeholders to shape new science-based guidance. It saw quickly that some emission sources, for example, those associated with streaming, are difficult to calculate in the absence of guidance from leading standards and protocols.

Goals Rooted in Science

Netflix’s sustainability strategy is built around 3 R’s: Reduce, Retain and Remove. See below for key metrics from Netflix's strategy.

45%

reduction of scope 1 and 2 emissions by 2030

100%

compensation of emissions that can’t be reduce internally by 2021

2022

year to achieve net zero across scopes 1-3

With a stronger understanding of its greatest emissions sources, Netflix was able to design a roadmap that gave the company confidence to communicate its science-based strategy widely.

Risk and opportunity are kind of two sides of the same coin. I've witnessed that firsthand in my career. If you manage sustainability with narrow blinkers on, then it's just about where's the next wildfire going to be. But if you manage sustainability—and in particular climate, which has become most critical and urgent of the sustainability considerations—with an opportunity lens, the sky's the limit as to what corners of the world or the market might lead your company to explore.

Emma Stewart, Chief Sustainability Officer, Netflix

Quote Source: Geiger, O. (2021). Sustainable Streaming Services Lead Industry Into Carbon-Free Future. Forbes.