Netflix's CSR Report by Cesar Coellar

2019

Published in 2019 by Cesar Augusto Coellar hello@augustocoellar.com www.augustocoellar.com Book design copyright ÂŠ 2019 Cesar Augusto Coellar Designed for the course: GR 425: Visual Systems 2 Instructed by Jessica Peltz Fall Semester 2019 Academy of Art University San Francisco, CA. All rights reserved. No portion of this book may be reproduced, stored in a retrieval system, or transmitted in any form or by any means electronic, mechanical, photo-copying, recording, or otherwise with-out the express written permission of the publisher. Typeset in Gotham and Helvetica Neue

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I am pleased I am to pleased share to with share you with Netflix’s you Netflix’s Sustainability Sustainability Report. We Report. take We take seriouslyseriously our role as oura role corporate as a corporate citizen, and citizen, we are andproud we are to proud showcase to showcase our progress our progress across three across keythree dimensions: key dimensions: economic, economic, environmental environmental and social and responsibility. social responsibility. Sustainability Sustainability and respect and for respect human forrights human rights are fundamental are fundamental to our way to of ouroperating. way of operating.

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serviceservice vision further LETTERLETTER FROM CEO people vision further FROM CEO plants people plant

energyenergy NETFLIX’S VISION VISION AND MISSION smile me friend NETFLIX’S AND MISSION smile me frien

social social growthgrowth PERFORMANCE HIGHLIGHTS happy profile PERFORMANCE HIGHLIGHTS happy profil

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“”“” we’re we’re inspired inspired byby the the power power ofof allall great great

LETTER FROM LETTER CEOFROM 8 CEO 8

L ETTER LETTE FRO R FRO M C EO M C EO

REED HASTINGS REED HASTINGS

I am pleased I am to pleased share with to share you with Netflix’s you Sustainability Netflix’s Sustainability Report. Report. Then, there’s Then,the there’s electricity the electricity we don’twe use don’t ourselves use ourselves but is but is We take We seriously take seriously our role as oura role corporate as a corporate citizen, and citizen, we are and werequired are to required deliverto Netflix deliver to Netflix you. This to you. is called This indirect is calledelectricity indirect electricity proud to proud showcase to showcase our progress our progress across three across keythree dimensions: key dimensions: use and use includes and includes energy from energy companies from companies we workwe with work like with like economic, economic, environmental environmental and social and responsibility. social responsibility. SustainabilSustainabilAmazon Web Amazon Services Web Services and internet andservice internetproviders. service providers. AlthoughAlthough ity and respect ity and for respect human forrights human arerights fundamental are fundamental to our way to our way this part this of our part energy of ourfootprint energy footprint is more difficult is more to difficult influence to influence since wesince don’t we actually don’thave actually control haveover control it, we over stillit,trywe tostill make try to make of operating. of operating. They guide They theguide way we thedo way business we do business and are essenand are essensure it’s as sure sustainable it’s as sustainable as possible. as possible. In that vein, In that we vein, work we withwork with tial to ourtial planet to our and planet communities and communities everywhere. everywhere. our service ourproviders service providers to measure to measure and report and this report electricity this electricity use use OperatingOperating in over 190 in over countries 190 countries with deepwith local deep connections local connections and thenand match then it with match regional it with RECs regional and RECs carbon andoffsets. carbonThis offsets. This and relationships and relationships gives us an gives advantage us an advantage toward making towardpositive making positive indirect energy indirectuse energy was use approximately was approximately 194,000 194,000 MWhs. MWhs. impacts and impacts creating and creating shared opportunity. shared opportunity. In 2019, In beyond 2019, our beyond renewable our renewable energy commitments, energy commitments, we we Now, more Now, than more ever,than stakeholders ever, stakeholders expect more expect of us. more They of us. They implemented implemented a new way a new to help wayreduce to helpour reduce carbon ourfotprint, carbon fotprint, want us to want help usfind to help solutions find solutions and to make and to a measurable make a measurable and and we are donating we are donating one tree one for every tree for membership every membership we sell. For we sell. For meaningful meaningful difference difference in the world. in theOur world. sustainability Our sustainability efforts efforts example,example, if we sellif300 we memberships sell 300 memberships in Perú ininthe Perú month in theofmonth of have always havebeen always strengthened been strengthened by open by dialogue open dialogue with many with many July, we’ll July, donate we’lland donate plantand 300plant trees300 in that treescountry in that by country the by the stakeholders, stakeholders, our own our employees, own employees, consumers, consumers, parents, parents, cuscusend of August. end of In August. addition, In addition, we are actively we are encouraging actively encouraging our our tomers, tomers, suppliers, suppliers, governments, governments, NGOs and NGOs shareowners. and shareowners. employees to plant trees to plant at their treesnearest at their parks, nearestschools parks, and schools and These diverse These perspectives diverse perspectives will continue will continue to help shape to helpour shape employees our public other places. public places. actions and actions how and we implement how we implement initiativesinitiatives around the around worldthe as worldany as otherany we movewe forward move on forward our journey. on our journey. Most importantly, Most importantly, we’re inspired we’re by inspired the power by the of power all the great of all the great BecauseBecause consumers consumers are at theare heart at the of our heart business, of our business, every- everystorytellers storytellers we’ve met we’ve whomet are who inspiring are inspiring sustainability sustainability values values for Netflixforfans Netflix around fansthe around worldthe through world entertainment. through entertainment. thing we thing do starts we do with starts our passion with ourfor passion providing for providing the media-serthe media-services thatvices people thatwant. people Achieving want. Achieving growth requires growthgiving requires people giving people There’s aThere’s lot morea to lotdo more andtowe’re do and encouraged we’re encouraged by all ourby friends all our friends more of the more brands of theand brands television and television they love.they Beyond love.tv-shows, Beyond tv-shows, in the space in the who space are working who are to working take us toone takestep us one further. step further. we’re making we’retargeted making targeted investments investments in documentaries, in documentaries, educa- educaPeople matter. PeopleOur matter. planet Our matters. planet matters. tional movies, tional biography movies, biography tv-seriestv-series and otherand categories other categories that that complement complement people'speople's diverse lifestyles. diverse lifestyles. Sincerely,Sincerely, In 2018, In we2018, hosted weahosted $100 million a $100fund million for fund education, for education, we we removedremoved Kevin Spacey Kevinfrom Spacey House fromofHouse Cards,ofsending Cards, asending clear a clear messagemessage about theabout company’s the company’s priorities.priorities. No to theNo possibility to the possibility of sexualofharassment. sexual harassment. Also in 2018, Also we in 2018, remain wecommitted remain committed to reducing to reducing our environour environmental impact mentalfrom impact electricity from electricity use - anduse we’re - and happy we’re tohappy report to report Reed Hastings Reed Hastings that we are thatmaking we areincredibly making incredibly good progress good progress on this. on this. PresidentPresident & CEO & CEO

LETTER FROM LETTER CEO FROM 9 CEO 9

V I S I ON VVISI ISIO AO NNN DA A MNN ISS DD M IMO IISSI N SSION ON

TATEMENT STATEMENT STATEMENT

For over For 20 Foryears, over over20 20 Netflix years, years, has Netflix Netflix engraved has hasengraved engraved its name its as itsname aname top as asaatop top brand with brand brand incontestable with withincontestable incontestable quality, thanks quality, quality, tothanks our thanks mission totoour ourand mission missionand and vision statements vision visionstatements statements that emphasize that thatemphasize emphasize our undivided our ourundivided undivided attention attention to attentiontoto give the best give givewherever the thebest bestwherever itwherever operates. ititoperates. operates. The vision The The statement vision visionstatement statement of ofof a company aacompany company donates the donates donates picture the the ofpicture picture where of the ofwhere where management the themanagement management wants thewants wants company the thecompany to company be in over totobe be a specific ininover overaaperiod specific specific of period time period inofoftime timeinin terms of success. terms termsofofsuccess. Based success. onBased this, Based our on onvision this, this,our statement ourvision visionstatement statement targets targets targets to be the to model tobe bethe the formodel the model rest for for ofthe the on-demand rest restofofon-demand on-demand video service video video proservice serviceproproviders. Anviders. viders. ambition An Anambition supported ambitionsupported supported by our mission by byour ourstatement. mission missionstatement. statement.

We We promise We promise promise our our customers our customers customers stellar stellar stellar service, service, service, our our suppliers our suppliers suppliers a valuable aa valuable valuable partner, partner, partner, our our investors our investors investors the the the prospects prospects prospects of sustained of of sustained sustained profitable profitable profitable growth, growth, growth, andand and our our our “” “” “” employees employees employees the the allure the allure allure of huge of of huge huge impact. impact. impact. Our mission Our Ourstatement mission missionstatement statement resoundsresounds resounds what we what are what best we weare known arebest bestknown known for, providing for, for,providing providing outstanding outstanding outstanding video entertainment video videoentertainment entertainment services.services. Itservices.ItIt also shows also also how shows shows we balance how howwe we the balance balance satisfaction the thesatisfaction satisfaction of our customers ofofour ourcustomers customers with the financial with withthe theneeds financial financial of needs our needs stakeholders. ofofour ourstakeholders. stakeholders. Netflix’s vision Netflix’s Netflix’s statement vision visionstatement statement is “Becoming isis“Becoming “Becoming the best the global thebest bestglobal global entertainment entertainment entertainment distribution distribution distribution service.” service.” The service.” vision The The statement vision visionstatement statement is isis all about what all allabout about the company what whatthe thecompany wants company to achieve. wants wantstotoItachieve. achieve. stressesItItthe stresses stressesthe the desire to set desire desire a quality totoset setbar aaquality quality in thebar provision barininthe theprovision of provision on-demand ofofon-demand on-demand video video video services. services. Specifically, services.Specifically, Specifically, this mission this thisstatement mission missionstatement statement is a reflection isisaareflection reflection of the leadership ofofthe theleadership leadership position Netflix position position aspires Netflix Netflix toaspires aspires attain and totoattain attain secure and andsecure secure in the country ininthe the and country country the world. and andthe theworld. world.

VISION AND VISION VISION MISSION AND ANDMISSION 10 MISSION 10 10

VISION & MISSION 2

VISI O N A N D M I SSI ON

PER FOR M ANCE HI GHLI GHTS

STATEMENT

Netflix’s core values arevalues integral Netflix’s core are o the smooth running Netflix’s integral to theofsmooth perationsrunning as theyofensure all Netflix’s layers remain focused the operations as on they enmajor goals of the company. sure all players remain focused on the major goals of the company.

For over 20 years, Netflix has engraved its name as Here’s a top how we’re progressing toward our long-range global brand with incontestable quality, thanks to our mission and and U.S. sustainability goals. We recognize that in some cases, vision statements that emphasize our undivided attention our to performance will vary year to year due to a vareity of direct give the best wherever it operates. The vision statement and of indirect factors, so we make sure to look at both long-termn a company donates the picture of where the management progress aggainst our baseline as well as our year-over-year wants the company to be in over a specific period of time in performance. We set near-term goals to ensure we’re moving terms of success. Based on this, our vision statement targets in the right direction, and also consider new goals to ensure to be the model for the rest of on-demand video servicewe’re pro- focused on the right opportunities and challenges. The viders. An ambition supported by our mission statement. performance data and progress reported here reflects the vast majority of our global business operations, based on data available to date. We will update our progress as we fill minor data gaps and march closer toward our goals. Since 2018, Netflix has decreased the amount of carbon footprint and energy consumption by 65%. In 2018, 60% of our estimated direct and indirect sales were matched with planted trees.These trees were planted in 16 different states/regions: Alabama, Alaska, Florida, Georgia, Iowa, Knsas, Minnesota, Montana, New Mexico, North Dakota, South Dakota, Texas and Utah, and 16 different countries: Australia, Brazil, Canada, Chile, China, Colombia, EU (AIB), Guatemala, Iceland, India, Japan, Malaysia and Taiwan. While this approach works for the scale of our energy use Inclusion Our mission statement resounds what we are best known at the moment, we are still relative newcomers on this journey. Innovationfor, providing outstanding video entertainment services. It We constantly evaluate our environmental impact and explore Passion also shows how we balance the satisfaction of our customers new opportunities to further our sustainability efforts. Curiosity with the financial needs of our stakeholders. Judgment Netflix’s vision statement is “Becoming the best global entertainment distribution service.” The vision statement is Communication all about what the company wants to achieve. It stresses the Courage desire to set a quality bar in the provision of on-demand video Selflessness services. Specifically, this mission statement is a reflection Integrity of the leadership position Netflix aspires to attain and secure Impact in the country and the world.

We promise our customers stellar service, our suppliers a valuable partner, our investors the prospects of sustained profitable growth, and our employees the allure of huge impact. “”

PERFORMANCE VISION12AND MISSION 10

GOALS OALS GOALS

Continue ContinueContinue totocreate createto and and create improve improve and planting improve plantingprograms planting programs programs ininorder order in order totoreduce reduce togreenhouse greenhouse reduce greenhouse gasses gassesand and gasses fight fightand climate climate fightchange. change. climate change. Reduce Reducethe Reduce theamount amount theofamount ofdirect directenergy ofenergy direct use use energy ininthe the use Unites Unites in the States States Unites States toto51,000 51,000 tomegawatt megawatt 51,000 megawatt hours hours(MWhs) (MWhs) hoursby (MWhs) by2022. 2022.by 2022. Reduce Reducethe Reduce theamount amount theofamount ofindirect indirect ofenergy indirect energyuse use energy ininthe the use Unites Unites in the Unites States StatestotoStates 190,000 190,000 to megawatt 190,000 megawatt megawatt hours hours(MWhs) (MWhs) hoursby (MWhs) by2022. 2022.by 2022. Introduce Introduce Introduce our ournew newcampaign our campaign new campaign “Our “OurForest Forest “Our Need Need Forest Your Your Need Help” Help” Your Help” by by2023. 2023.by $1 $12023. plants plants $1 one one plants native native one tree tree native on onaatree National National on a Forest National ForestininForest in need needofofreforestation. need reforestation. of reforestation. And, And,for forevery And, everyfor $1 $1we every weinvest invest $1 we ininreforinvest refor- in reforestation, estation,estation, the theU.S. U.S.Forest the Forest U.S. Service Service Forestprovides Service providesprovides $2 $2ofofvalue value $2inof in value in project projectsupport support projectand support andimplementation. implementation. and implementation. By By2022, 2022,By plant plant 2022, one one plant tree treeaone aday day tree each each a day year year each globally. globally. year globally.

PERFORMANCE PERFORMANCE PERFORMANCE 1313 13

â&#x20AC;&#x153;â&#x20AC;? one touch of nature makes the whole world kin. - William Shakespeare

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VISI O N A N D M I SSI ON STATEMENT

THIS PAGE HIS PAGE Climate Climate change is achange global is a global thatand hallenge that haschallenge no borders no borders and o combat has it requires coordinated combat it requires work by alltocountries. coordinated work by all countries.

OPPOSITE PAGE OPPOSITE PAGE The total amount of he total amount of greenhouse greenhouse gases proases produced to directly and duced to directly and ndirectly support human indirectly support huctivities, usually expressed in man activities, usually quivalent tons of carbon dioxide. expressed in equivalent tons of carbon dioxide.

C L I M ATE C H A N GE Fordo over years, engraved its name Many people not 20 know whatNetflix it reallyhas amounts to, either due as a top brand withor incontestable quality, thankswhich to ourhas mission and to unreliable sources deliberate misinformation, vision statements emphasize undivided attention to led to a series of myths aboutthat climate change.our In these pages, givesubject the best wherever it operates. Theviewpoint, vision statement of we tackle the from an objective, scientific company the pictureofofclimate where change the management discussingathe causes donates and consequences and how itwants shouldthe becompany tackled. to be in over a specific period of time in of clarify success. on often this, our vision for statement targets First, weterms need to twoBased concepts mistaken synto bechange the model thewarming. rest of on-demand service proonyms: climate and for global There is anvideo importviders. An ambition supported by our statement. ant difference between them, however, given thatmission it is global warming that causes climate change. As the planet’s temperature rises more than it would naturally, the climate varies. Although it is certain that Earth has naturally warmed up and got colder during other eras, such cycles have always been much slower, taking millions of years, whereas now, within a period of just 200 years, we are reaching levels that in the past brought about extinctions. Global warming is caused by the greenhouse effect, a natural process by which the atmosphere retains some of the Sun’s heat, allowing the Earth to maintain the necessary conditions to host life. Without the greenhouse effect, the average temperature of the planet would be -180C. The problem is that daily human activities maximize the mission statement resounds whattowe are best known greenhouseOur effect, causing the planet’s temperature increase even more.for, providing outstanding video entertainment services. It The global brings disastrous consealsotemperature shows how increase we balance the satisfaction of our customers with the financial needs ofofour quences, endangering the survival thestakeholders. Earth’s flora and Netflix’s vision statement is “Becoming the best global fauna, including human beings. The worst climate change entertainment distribution service.” vision statement is impacts include the melting of the ice mass at theThe poles, which all about the company to and achieve. It stresses the in turn causes rising what sea level, producingwants flooding threatento set a quality barwhich in the provision of on-demand video ing coastaldesire environments through small island states risk disappearing entirely. services. Specifically, this mission statement is a reflection It is important to be clearposition that climate beand secure of the leadership Netflixchange aspirescannot to attain avoided. We cancountry mitigateand its effects and adapt to its consein the the world. quences, i.e. we can fight it through the application of small and large scale measures that help to slow down climate change. (Acciona, 2019)

We promise our customers stellar service, our suppliers a valuable partner, our investors the prospects of sustained profitable growth, and our employees the allure of huge impact. “”

AND MISSION 10 ARTICLESVISION 18

CA R CA B ON R BFOOTPRINT ON F OOTPRINT When you When driveyou a car, drive thea engine car, theburns engine fuel burns which fuel creates whichacreates a certain amount certain of amount CO2, depending of CO2, depending on its fuel onconsumption its fuel consumption and the driving and thedistance. driving distance. (CO2 is the (CO2 chemical is the chemical symbol for symbol car- for carbon dioxide). bon dioxide). When you When heat you yourheat house your with house oil, gas withoroil, coal, gas or coal, then you then also you generate also generate CO2. Even CO2. if you Even heat if you yourheat house your with house with electricity,electricity, the generation the generation of the electrical of the electrical power may power alsomay havealso have emitted aemitted certainaamount certain of amount CO2. of When CO2. you When buy you foodbuy andfood and goods, the goods, production the production of the food of the andfood goods andalso goods emitted also emitted some quantities some quantities of CO2. of CO2. Your carbon Yourfootprint carbon is footprint the sumisof the allsum emissions of all emissions of CO2 (carof CO2 (carbon dioxide), bon dioxide), which were which induced were by induced your activities by your activities in a givenin a given time frame. timeUsually frame. aUsually carbonafootprint carbon footprint is calculated is calculated for the for the time period timeofperiod a year.of a year. The carbon Thefootprint carbon footprint is a very is powerful a very powerful tool to understand tool to understand the impact the ofimpact personal of personal behaviourbehaviour on globalon warming. global warming. Most peoMost people are shocked ple are shocked when they when see the theyamount see theof amount CO2 their of CO2 activitheir activities create! ties(Time create! for(Time Change, for Change, 2019) 2019)

ARTICLES ARTICLES 2 2

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STATEMENT

aa major, eorests a major, areForests Forests requisite a major,are are front requisite major,front requisite front front ac- fight against nf the action global inrequisite ofthe fight action global against in fight theofglobal against in the change. global fightchange. hic atastrophic climatetion catastrophic change. climate climate against catastrophic climate change.

Maximizing g nature’s Maximizing ability nature’s to ability nature’s to ability to ackle ate change climate tackle could change climate have could change havecould have nature’s he effect same as effect ifMaximizing the thesame world as if effect the put world as ifput the world put ability to climate ecomplete stop to the astop complete burning to tackle theof stop burning to the of burning of could have the y.il annually.change oil annually. same effect as if the world put a complete stop to the burning of oil annually.

We promise our customers stellar service, our suppliers a valuable partner, our investors the prospects ofisclimate sustained profitable growth, and our As we continue As we continue to Aswatch we continue tohow watch climate to how watch climate change howchange making ischange making an isTrees an making provide Trees an provide shade, Trees which shade, provide helps which shade, thehelps soil which retain the helps soil moisture retain the soil moisture rather retain rather moisture rather impact around impactthe around impact world, the around fueling world,the stronger fueling world, stronger hurricanes fuelinghurricanes stronger and forest hurricanes and forest than and drying forest thanout, drying and than out, thereby drying and thereby supports out, andsupports thereby fertile agriculture. supports fertile agriculture. fertile More agriculture. More More “” shade and shade less and sun shade less in urban sun andimpact. in less areas urban sun also areas in urban helps alsoareas reduce helpsalso energy reduce helpsenergy reduce energy fires, drying fires,up drying water fires, up resources, drying water resources, up diminishing water resources, diminishing foodthe security, diminishing food security, andfoodand security, and employees allure of huge

displacing displacing large populations displacing large populations large in search populations inof search basicin of needs, search basic we needs, of are basic weneeds, are weconsumption are when consumption consumption it’swhen hot, further it’s hot, when reducing further it’s hot, reducing emissions further emissions reducing and savemissions and sav- and savalso in aalso direinsearch a dire alsofor search in answers a dire forsearch answers and solutions. for and answers solutions. and solutions. ing on cooling ing on cooling costs. ing oncosts. cooling costs. Our what we are best known Trees play Trees a vital play Trees role a mission vital inplay addressing role astatement in vital addressing role climate inresounds addressing climate change. change. Trees climate Trees change. Trees Trees are Trees the are anchors Trees the anchors are for plant the for anchors and plant wildlife for andplant wildlife biodiversity, andbiodiversity, wildlife biodiversity, for, providing outstanding video services. It healthy absorb carbon absorband carbon absorb other and carbon gasses otherand from gasses other thefrom atmosphere. gasses the atmosphere. fromentertainment Athe single atmosphere. A single which A creates single which creates which ecosystems healthy creates ecosystems healthy that convert ecosystems that the convert sun’s thatthe energy convert sun’s energy the sun’s energy also how we balance theofand of our customers mature tree mature cantree absorb mature canshows absorb 48lbs. tree can of48lbs. absorb carbon of 48lbs. carbon a year, asatisfaction carbon year, makes and a year, makes through and makes through photosynthesis, photosynthesis, throughabsorbs photosynthesis, absorbs and transfers and absorbs transfers carbon, and carbon, transfers makes makes carbon, makes withfor the financial needs our stakeholders. enough enough clean oxygen clean enough oxygen 4clean people for oxygen 4to people breathe for to 4of people breathe fresh air. tofresh A breathe previair. Afresh previsoil, air. and A previsoil, provides and provides soil, a treasure and aprovides treasure trove ofatrove natural treasure ofyet-to-be natural trove of yet-to-be natural discov-yet-to-be discov- discovNetflix’s vision statement istree-planting “Becoming theered bestbiological global ered biological solutions ered biological solutions for cleaning solutions for cleaning up our forplanet. up cleaning our planet. up our planet. ous special ous special report ous by report special IPCCbystated report IPCC that by stated IPCC tree-planting that stated that could tree-planting could could entertainment distribution Theyear. vision statement is is there While there While stillWhile debate is still there debate when is still it when comes debate it to comes when global ittocomes forest global to forest global forest sequester sequester aroundsequester 1.1–1.6 around 1.1–1.6 GT around of CO2 GT 1.1–1.6 per of CO2 year. GTservice.” per of year. CO2 per allTrees about what thecommunities company wants to achieve. Itdata, stresses themust and data, we anddata, we transition must and transition we towards must transition towards sustainable sustainable towards energy sustainable proenergy proenergy proTrees can Trees protect can coastal protect can communities coastal protect coastal fromcommunities severe fromflooding severe from flooding severe flooding desire to set a the quality bar instrength theitprovision of on-demand video duction, one one duction, for thing’s sure: one for the thing’s sure: world the forneeds sure: worldmore the needs world trees more needs and trees more andtrees and and storms, and storms, by slowing and by storms, slowing the water’s by slowing water’s strength the water’s as surges as strength it on surges as duction, itonsurges on thing’s services. Specifically, this mission statement is areleasing reflection healthy forests healthyifforests we healthy areifto we forests address are to if we address climate are tochange climate addresschange and climate create and change create and create land, and land, by absorbing andland, by absorbing and excess by absorbing water excessinwater the excess soil in and the water soil releasing inand thereleasing soil and of leadership position Netflix aspires to attain and secure a habitable a habitable worldafor habitable world future forgenerations. world future for generations. future generations. it as water it asvapor water itinto vapor asthe the water into air.vapor the air. into the air. in the country and the world.

VISION AND20 MISSION2010 WHY TREES WHYMATTER TREES WHY MATTER 20 TREES MATTER

H ALHAL F A FD EGRE A D EGERO EF E WA OF R WA M IR NM G ING M AKES M A KES A B IAG BDI IGFFER D I FFER ENCE ENCE

EXPLAINING EXPLAINING IPCC’S 1.5°C IPCC’S SPECIAL 1.5°C SPECIAL REPORTREPORT

1.5˚C 1.5˚C

2˚C 2˚C SPECIES SPECIES LOSS: LOSS: VERTEBRATES VERTEBRATES

2x 2x

Vertebrates Vertebrates that lose that at least lose at half least of their half of range. their range.

WORSE WORSE

2X 2X

PLANTS PLANTS

WORSE WORSE

Plants that Plants lose that at least lose at half least of their half of range. their range.

3X 3X

INSECTS INSECTS Insects Insects that lose that at least lose at half least of their half of range. their range.

WORSE WORSE

WHY TREES WHY MATTER TREES MATTER 21 21

VISI O N A N D M I SSI ON STATEMENT

Dotoyou to join our o you want joinwant our fight fight against gainst climate change?climate please change? please visit: sit: www.netflix.com/onetree netflix.com/onetree

lready have a Netflix’s account? Already haveTree a Netflix’s hen look for the One link on account? Then look for ur website to see how your tree growing!the One Tree link on our website to see how your tree is growing!

We promise our customers stellar service, 2 019 our suppliers a valuable partner, our investors the In 2019, we increased the number of trees by 20%. Today, more than 80% of our direct and indirect sales are matched planted trees. prospects of sustainedwithprofitable growth, and our By 2020, we expect to match our entire sales to planted employees the allure of impact. “” treeshuge globally. By 2025, we will increase our number of planted trees to 3

h ow m a ny t re e s for every membership sold. Our mission statement resounds what we are best known h ave for, we plan te d? video entertainment services. It providing outstanding

also shows how we balance the satisfaction of our customers with the financial needs of our stakeholders. 2 018 Netflix’s vision statement is “Becoming the best global entertainment distribution service.” The vision statement is In 2018, 60% of our estimated direct and indirect sales were all about what the company wants to achieve. It stresses the matched with planted trees. These trees were planted in 18 desire to set a quality bar in the provision of on-demand video different states and 16 different countries. services. Specifically, this mission statement is a reflection of the leadership position Netflix aspires to attain and secure in the country and the world.

VISION AND22MISSION 10 WHY TREES MATTER

T R EE TREE TRE FAC E FAC TS TS

3.5/10 3.5/10 Trees Trees

Trees and Trees Trees plants and andare plants plants being are are burned, being being burned, burned, degraded degraded degraded and logged and and logged logged at astonishing at at astonishing astonishing rates. rates. rates. get chopped get get chopped chopped down and down down are and and processed are are processed processed into pulpinto into for pulp pulp making for for making making paper products paper paper products products such as such such tissueas aspaper, tissue tissuetoothpaste paper, paper, toothpaste toothpaste and and and more. more. more. man destroys man man destroys destroys an area an of anforest area area of of the forest forest size the the of asize size football of of aa football field. football field. field. Without Without Without tree roots tree tree to roots roots anchor to to the anchor anchor sun,the the thesun, sun, soil can the the soil soil dry can out, can dry dry out, out, More than More More halfthan than of the half halfworld’s of of the the timber world’s world’sand timber timber 72&and and of paper 72& 72& of ofispaper paper is isleading leading to leading problems to to problems problems like increased like like increased increased floodingflooding flooding and inability and and inability inability to to to consumed consumed consumed by 22% by by of 22% the 22% world’s of of the the population world’s world’s population population (the united (the (the united united farm. The farm. farm. states The Thethat states states a third that thatofaa the third third world’s of of the the arable world’s world’sland arable arable hasland land has has states, europe states, states,and europe europe japan). and andWorldwide, japan). japan). Worldwide, Worldwide, industrialized industrialized industrialized coun- councounbeen lost been been to deforestation lost lost to to deforestation deforestation since 1960. since since Cash 1960. 1960. crops Cash Cash planted crops crops planted planted tries consume tries tries consume consume over twelve over overtimes twelve twelve more times times wood more more products wood wood products products per per perafter clear after after cutting clear clearor cutting cutting burning, or or burning, burning, like soy,like like coffee, soy, soy,and coffee, coffee, palm and and oil,palm palm oil, oil, person than person person non-industrialized than than non-industrialized non-industrialized countries. countries. countries. can actually can can actually actually exacerbate exacerbate exacerbate soil erosion soil soil erosion because erosion because because their roots their their roots roots cannot hold cannot cannot intohold hold the into into soil the the way soil soil the the trees’ way way can. trees’ trees’ can. can.

Every Every 1.2 1.2 seconds seconds

80%80%

of the world’s of of the the forests world’s world’sare forests forests already are are already destroyed. already destroyed. destroyed.

121+ 121+

natural natural remedies remedies in the rainforest in in the the rainforest rainforest can be used can can be be as used used medi-as as medimediIf forestsIfIfare forests forests destroyed are are destroyed destroyed through through through logging logging or logging burning, or or burning, burning, their their theirnatural remedies cines. cines. cines. carbon is carbon carbon released is is released released into the into into atmosphere the the atmosphere atmosphere as carbon as as dioxide, carbon carbon dioxide, dioxide, a cimateaa cimatecimatechanging changing changing greenhouse greenhouse greenhouse gas. gas. gas. The world’s The The rainforests world’s world’s rainforests rainforests could completely could could completely completely vanish invanish vanish a hun-in in aa hunhun-

1.6 1.6

billion people billion billionrely people people on forests rely rely on onfor forests forests their for for livelihoods. their their livelihoods. livelihoods.

dred years dred dred atyears years the current at at the the rate current current of deforestation. rate rate of of deforestation. deforestation.

15% 15%

of all greenhouse of of all all greenhouse greenhouse gas emissions gas gas emissions emissions are result are are ofresult result deforestation. of of deforestation. deforestation. Tropical Tropical Tropical forest destruction forest forest destruction destruction accounts accounts accounts for about for for20about about percent 20 20 percent percent of current of of greenhouse current current greenhouse greenhouse gas emissions. gas gas emissions. emissions. Healthy Healthy Healthy forests help forests forests absorb help help greenhouse absorb absorb greenhouse greenhouse gasses and gasses gasses car-and and carcar-

80,000 80,000 Acres Acres

of forests of ofdisappear forests forests disappear disappear from thefrom from Earth the the every Earth Earth day. every every day. day.

bon emissions bon bon emissions emissions that are that that caused are are caused by caused human by bycivilizations human human civilizations civilizations and and and contribute contribute contribute to globalto toclimate global global change. climate climate change. change.

Removing Removing Removing trees deprives trees trees deprives deprives the forest the the offorest forest portions of of portions portions of its canof of its its cancanopy, which opy, opy,blocks which whichthe blocks blocks sun’s the the rays sun’s sun’s during rays raysthe during during day the the andday day holds and and holds holds in heat atin innight. heat heat at at This night. night. disruption This This disruption disruption leads to leads leads more to extreme to more more extreme extreme temtemtemperatures peratures peratures swhingsswhings swhings that canthat that be harmful can can be be to harmful harmful plantsto toand plants plants animals. and and animals. animals.

WHY TREES WHY WHYMATTER TREES TREES MATTER MATTER 23 23 23

time year HIGHLIGHTS record record timeadds yearFINANCIAL adds FINANCIAL HIGHLIGHTS

trees sun SOCIAL AND EMPLOYEE MATTERS employee trees sun SOCIAL AND EMPLOYEE MATTERS employee social social growthgrowth profile profile impactimpact forecast accurate forecast accurate

CORPORATE SUSTAINABILITY REPORT CORPORATE SUSTAINABILITY REPOR

F I N ANCI FINA VISIA O NLN CH IA AIGH N L DHLIM IGGIH SSI HLTS IG ON H TS

Q3 RESULTS Q3 STATEMENT RESULTS & Q4 FORECAST & Q4 FORECAST

In Q3, weInFor grew Q3,over we to $5.2 20 grew years, billion to $5.2 Netflix in billion revenue, hasinengraved revenue, up 31% over up its name 31% the over as athe top prior year,prior brand andyear, operating with and incontestable operating income doubled income quality, to doubled thanks $1.0 billion. toto$1.0 our Paid billion. missionPaid and net addsnet totaled vision adds statements 6.8m totaled compared 6.8m that compared emphasize to our 7.0m to our our forecast undivided 7.0m forecast and attention andto giveofyear the best it operates. Thethe vision statement prior yearprior Q3 6.1m. Q3 As ofwherever 6.1m. we’ve As improved we’ve improved the variety, diversity variety, diversityof a company themember picture of whereengagement the has management and quality and ofquality our content ofdonates our slate, content slate, member engagement has wantshas the increased, company to bewe’re in over awe’re specific of time grown, revenue grown, revenue has increased, and and able to further ableperiod to fund further fundin terms of success. Based on this, our vision statement targets our content our investment. content investment. toIn be the model for the rest of paid on-demand video service proIn Q3’19, average Q3’19, streaming average streaming paid memberships memberships and ARPU and ARPU viders. Anyear ambition supported by respectively. our Excluding mission statement. grew 22% grew and22% 9% and 9% overyear year, over respectively. year, Excluding a a -$137m year -$137m overyear yearover impact year from impact F/X,from consolidated F/X, consolidated revenue revenue growth was growth 35%, was while 35%, streaming while streaming ARPU growth ARPUwas growth 12%. was 12%. OperatingOperating margin ofmargin 18.7%of(up 18.7% 670 bps (up year 670 bps overyear year)over wasyear) was above our above guidance our guidance due to timing due to of timing content ofand content marketing and marketing spend, which spend, willwhich be more will weighted be more weighted to Q4’19.to EPS Q4’19. amounted EPS amounted to $1.47 vs. to $1.47 $0.89 vs. and$0.89 included and a included $171 million a $171 non-cash million non-cash unreunrealized gain alized fromgain F/X remeasurement from F/X remeasurement on our Euro on denominated our Euro denominated debt. Ourdebt. EuroOur bonds Euro provide bondsus provide with aus small withnatural a smallhedge natural hedge for our growing for our European growing European revenues.revenues.

We promise our customers stellar service, our suppliers a valuable partner, our investors the prospects of sustained profitable growth, and our employees the allure of huge impact. “” Total Total paidpaid net net adds adds of 6.8m of 6.8m increased increased 12%12% Our mission statement resounds what we are best known yearyear over yearyear and and waswas an Itall-time an all-time Q3 record. Q3 record. for,over providing outstanding video entertainment services.

also shows how we balance the satisfaction of our customers with the financial needs of our stakeholders. As a reminder, As aNetflix’s reminder, the quarterly vision the quarterly guidance statement guidance weisprovide “Becoming weisprovide our actual theisbest our actual global internal forecast internal entertainment at forecast the time distribution at we thereport time we service.” and report we strive and The we vision for strive accustatement for accu-is racy. In Q3, racy. allour about Inguidance Q3, what our the guidance forecast company was forecast wants our most was to achieve. our accurate mostIt accurate stresses in the in recent history. recent desirehistory. to set a quality bar in the provision of on-demand video services. Specifically, this mission statement is a reflection of the leadership position Netflix aspires to attain and secure in the country and the world.

FINANCIAL FINANCIAL VISION HIGHLIGHTS AND HIGHLIGHTS MISSION 26 1026

G LOGLO BAL BA PALIDPA NIEDT NAEDTDS A DBY DS QBY UAQUA R TER R TER

FORECAST, ACTUALSACTUALS AND VARIANCE FORECAST, AND VARIANCE

10.2M 10.2M 9.8M 9.1M 8.3M

9.1M

9.7M

7.5M

7.1M

8.2M

9.2M 7.4M

8.2M

8.7M

8.1M

6.5M 5.5M

8.7M

7.4M

7.9M

6.5M

9.7M

8.3M 9.2M

7.9M

9.8M

5.5M

20182018 FINANCIAL FINANCIAL HIGHLIGHTS HIGHLIGHTS 27 27

2.7M

20192019

S OCIAL SVISI OCA IA LDAENMDP E LOY PE LOY EON MEATTER E M ATTER S S ONN MM I SSI

FREEDOM FREEDOM & RESPONSABILITY & RESPONSABILITY STATEMENT

This of organization kind of organization is very specialized is very specialized and well and adapted well adapted For over 20where years,people Netflix hasby engraved name as floor a topkindThis There areThere companies are companies wherewalk people trash walk on by its the trash floor on the withit leaving incontestable quality, thanks to our mission in the office, inbrand the leaving office, for someone it for someone else to pick else it to up,pick and itthere up, and there toand its business to its business model. Eventually, model. Eventually, however,however, over 10 to over 100 10 to 100 vision statements that emphasize our undivided attention are companies are companies where people where inpeople the office in the lean office down lean to down pick to years, pickto theyears, business the business model inevitably model inevitably has to change, has to and change, mostand most give the best it operates. The vision of companies up the trash up the they trash see, they aswherever they see,would as they at would home.at We home. try hard Westatement to try hard of to these of these companies are unable aretounable adapt.to adapt. a company theeveryone pictureeveryone of where the management To avoid To theavoid rigidity theofrigidity over-specialization, of over-specialization, and avoid and theavoid the be the latter, be the a company latter, donates a company where where feels a sense feels aofsense of wants thethe company behelp in over a specific in of chaos chaos growth, ofwhile growth, retaining while retaining freedom,freedom, we work we to have workas to have as responsibility responsibility to do to right do thing theto right to thing the tocompany help the company atperiod every of at time every terms ofup success. on this, vision statement simple business a business as we can asgiven we can ourgiven growth ourambitions, growth ambitions, and and juncture.juncture. Picking Picking the trash upBased the is the trash metaphor is theour metaphor for taking for care takingtargets care a simple be the model forand the rest ofand on-demand videonot service prokeep employee to keep employee excellence excellence rising. Werising. work We to have workatocomhave a comof problems, oftoproblems, small andsmall large, and large, never thinking never thinking “that’s “that’stonot viders. An ambition supported our real mission statement. pany of self-disciplined pany of self-disciplined people who people discover who discover and fix issues and fix issues my job.” We my don’t job.” We have don’t rules have about rules picking aboutby up picking the uporthe metareal or metabeing without told being to dotold so.to do so. phoric trash. phoric Wetrash. try toWe create try to the create sensethe of sense ownership of ownership so that so without that We are dedicated We are dedicated to increasing to increasing employeeemployee freedom freedom to fight to fight this behavior this behavior comes naturally. comes naturally. theofpython process. of process. Some examples Some examples of how we of operate how we operate Our goal Our is togoal inspire is topeople inspiremore people than more manage than them. manage Wethem.the Wepython with with amounts unusual amounts of freedom of freedom are: are: trust ourtrust teams ourtoteams do what to do they what think they is best thinkfor is best Netflix for—Netflix — unusual We shareWe documents share documents internallyinternally broadly and broadly systematically. and systematically. giving them giving lotsthem of freedom, lots of freedom, power, and power, information and information in support in support Nearly every Nearly document every document is fully open is fully for open anyone for to anyone read and to read and of their decisions. of their decisions. In turn, this In turn, generates this generates a sense ofa responsibilsense of responsibilcommentcomment on, and everything on, and everything is cross-linked. is cross-linked. Memos on Memos each on each ity and self-discipline ity and self-discipline that drives that usdrives to do great us to work do great thatwork benethat benetitle’s performance, title’s performance, on every on strategy every decision, strategy decision, on every on comevery comfits the company. fits the company. We believe Wethat believe people thatthrive people on thrive being on trusted, beingon trusted, freedom, on freedom, petitor, and petitor, on every and on product every product feature test feature are test openare foropen all for all and on being and on able being to make able atodifference. make a difference. So we foster So we freedom foster freedom employees employees to read. There to read. areThere someare leaks, some butleaks, the value but the of highvalue of highand empowerment and empowerment whereverwherever we can. we can. ly-informed ly-informed employees employees is well worth is well it. worth it. In many In organizations, many organizations, there is an there unhealthy is an unhealthy emphasisemphasis on on There areThere virtually areno virtually spending no spending controls or controls contract or contract signing signing process process and not much and not freedom. much freedom. These organizations These organizations didn’t didn’t controls.controls. Each employee Each employee is expected is expected to seek advice to seekand advice per- and perOur mission resounds what we are bestharder known spective spective as appropriate. as appropriate. “Use good “Use judgment” good judgment” is our core is preour core prestart thatstart way,that butway, the statement python but theof python process of process squeezed squeezed harder for, providing outstanding videoSpecifically, entertainment ceptItfor everybody. cept for everybody. every time every something time something went wrong. wentSpecifically, wrong. many organizamanyservices. organizations have tions also freedom have showsfreedom and howresponsibility weand balance responsibility the when satisfaction they when are of they small. ourare customers small. Our policyOur forpolicy travel,for entertainment, travel, entertainment, gifts, andgifts, otherand expenses other expenses EveryoneEveryone knows each knows other, each and other, everyone picks up picks the trash. up the trash. with the financial needs of and our everyone stakeholders. is 5 words is long: 5 words “actlong: in Netflix’s “act in best Netflix’s interest.” best interest.” We also avoid We also avoid As they grow, As they however, grow,vision however, the business the business getsismore gets complex, morethe complex, and andcompliance Netflix’s statement “Becoming best global the the compliance departments departments that mostthat companies most companies have to have to sometimes sometimes the average the talent average and talent passion and level passion goes level down. goes down. entertainment distribution service.” The vision statement enforce is their enforce policies. their policies. As the informal, As informal, smooth-running smooth-running organization organization to starts break to break allthe about what the company wants tostarts achieve. It stresses Our the vacation Our vacation policy is policy “take vacation.” is “take vacation.” We don’tWe have don’t anyhave any down, pockets down, pockets emerge, chaos and emerge, the provision general and theoutcry general is outcry to is to or forms rules rules or around formshow around many how weeks manyper weeks year. per Frankly, year. we Frankly, we desireof tochaos set a of quality bar in the of on-demand video “grow up” “grow and up” add and traditional add traditional management management and process andisprocess to to intermix work intermix andwork personal and personal time quitetime a bit, quite doing a bit, email doing at odd email at odd services. Specifically, this mission statement a reflection hours, hours, offtaking weekday off weekday afternoons afternoons for kids’ games, for kids’etc. games, Our etc. Our ofchaos. the leadership Netflix aspires to attain reduce the reduce theAs chaos. rulesposition As andrules procedures and procedures proliferate, proliferate, theand secure the taking in the country and the world. value system value evolves system into evolves rule into following rule following (i.e. that (i.e. is how thatyou is howleaders you make leaders sure make theysure set good they set examples good examples by takingby vacations, taking vacations, get rewarded). get rewarded). often coming oftenback coming withback freshwith ideas. fresh ideas.

We promise our customers stellar service, our suppliers a valuable partner, our investors the prospects of sustained profitable growth, and our employees the allure of huge impact. “”

SOCIAL AND SOCIAL EMPLOYEE AND MATTERS MATTERS 28 28 VISION ANDEMPLOYEE MISSION 10

Each employee chooses each year how much of their compensation they want in salary versus stock options. You can choose all cash, all options, or whatever combination suits you4. You choose how much risk and upside you want. These 10-year stock options are fully-vested and you keep them even if you leave Netflix. There are no compensation handcuffs (vesting) requiring you to stay in order to get your money. People are free to leave at any time, without loss of money, and yet they overwhelmingly choose to stay. We want managers to create conditions where people love being here, for the great work and great pay. You might think that such freedom would lead to chaos. But we also don’t have a clothing policy, yet no one has come to work naked. The lesson is you don’t need policies for everything. Most people understand the benefits of wearing clothes at work. There are a few important exceptions to our anti-rules pro-freedom philosophy. We are strict about ethical issues and safety issues. Harassment of employees or trading on insider information are zero tolerance issues, for example. Some information security issues, such as keeping our members’ payment information safe, have strict controls around access. Transferring large amounts of cash from our company bank accounts has strict controls. But these are edge cases. In general, freedom and rapid recovery is better than trying to prevent error. We are in a creative business, not a safety-critical business. Our big threat over time is lack of innovation, so we should be relatively error tolerant. Rapid recovery is possible if people have great judgment. The seduction is that error prevention just sounds so good, even if it is often ineffective. We are always on guard if too much error prevention hinders inventive, creative work.

SOCIAL AND EMPLOYEE MATTERS 29

“” on the last d ay of the wor ld i would want to p l ant a tree.

- W.S. Merwin

RECOGNITION AND AWARDS record impact hard RECOGNITION AND AWARDS record impact ha matter commitment STORIES THAT INSPIRE approach matter commitment STORIES THAT INSPIRE approa global THANK YOU NOTE mission goal accurate global THANK YOU NOTE mission goal accura

CORPORATE SUSTAINABILITY REPORT

CORPORATE SUSTAINABILITY RE

R ECOGN RECO VISIIT OGN N IOA IT NNIO AND D NMA I AWA SSI NDON AWA R DS R DS STATEMENT

We’re honored We’retohonored have our to have our hard workhard recognized work recognized out in out in he world,the where world, its impact where its impact s most felt. is most felt.

For over 20 years, Netflix has engraved its name as Netflix a top has Netflix beenhas recognized been recognized for our innovative for our innovative programs, programs, brand with incontestable quality, thanks to our mission and and diverse diverse inclusive and inclusive workplace workplace culture, and culture, approach and approach to sus- to susvision statements that emphasize our undivided attention to tainability. tainability. These awards Thesereflect awardsthe reflect things the our things people ourdo people to do to give the best wherever it operates. The vision statement of a difference make make a difference on the job, oninthe their job,communities, in their communities, and around and around a company donates the picture of where the management the world. the world. wants the company to be in over a specific period of timeWe in see sustainability We see sustainability as an ongoing as an ongoing commitment, commitment, not sim- not simterms of success. Based on this, our vision statement targets ply a goal plytoabe goal reached. to be reached. So we’reSo continuously we’re continuously working working to to to be the model for the rest of on-demand video servicereduce pro- our reduce global our footprint global footprint while creating while innovative creating innovative solutionssolutions viders. An ambition supported by our mission statement. to support to the support communities the communities we operate we in operate aroundinthe around world. the world. Here are Here someare of some our latest of our recognitions: latest recognitions:

Netflix is Netflix considered is considered a leader in a service, leader green building in green development building development We promise our customers stellar and our rating and our is rating unchanged is unchanged at 'AAA' at in 'AAA' MSCI in Ratings MSCI Ratings report, updated report, updated in July 2019. in July MSCI 2019. ESG MSCI Ratings ESG helps Ratings helps our suppliers a valuable partner, oursocialinvestors the investors investors identify environmental, identify environmental, and social governance and governance (ESG) risks (ESG) andrisks opportunities and opportunities within their within portfolio. their portfolio. prospects of sustained profitable growth, and our Netflix remains Netflix in remains the FTSE4Good in the FTSE4Good Index Series Index following Series following the the “”Series June huge 2019 June review. 2019The review. FTSE4Good The FTSE4Good Index Indexidentifies Series identifies employees the allure of impact. companies companies that demonstrates that demonstrates strong environmental, strong environmental, social social and governance and governance (ESG) practices. (ESG) practices. Netflix has Netflix beenhas included been included Our mission statement resounds what we are best known in these indexes in these from indexes 2003. from 2003. for, providing outstanding video entertainment services. It also shows how we balance the satisfaction of our customers In 2018, Netflix In 2018, achieved Netflix achieved Leadership Leadership level A- inlevel the ACDP in the Cli- CDP Cliwith the financial needs of our stakeholders. mate Change mate rating. Change This rating. indicates This indicates that Netflix that has Netflix implehas impleNetflix’s vision statement is “Becoming the best global mented actions mented to actions effectively to effectively manage manage the environmental the environmental entertainment distribution service.” The vision statement is impacts impactstorelated climatetochange climate.This change result .This indicates result indicates NetNetall about what the company wants to achieve. It stresses the related flix has implemented flix has implemented a range of a range actions of to actions manage to climate manage climate desire to set a quality bar in the provision of on-demand video change, both change, in its both owninoperations its own operations and beyond, and beyond, includingincluding services. Specifically, this mission statement is a reflection verification verification or assured or emissions assured emissions data. Netflix data. has Netflix particihas particiof the leadership position Netflix aspires to attain and secure pated in pated the climate in the change climate program change program since 2007 since and 2007 cli- and cliin the country and the world. mate change matesupply changechain supply program chain program since 2008. since 2008.

VISION AND MISSION RECOGNITION RECOGNITION AND AWARDS AND AWARDS 34 10 34

Netflix has been recognized for our innovative programs, diverse and inclusive workplace culture, and approach to sustainability. These awards reflect the things our people do to make a difference on the job, in their communities, and around the world. We see sustainability as an ongoing commitment, not simply a goal to be reached. So weâ&#x20AC;&#x2122;re continuously working to reduce our global footprint while creating innovative solutions to support the communities we operate in around the world. Here are some of our latest recognitions: Netflix is considered a leader in green building development and our rating is unchanged at 'AAA' in MSCI Ratings report, updated in July 2019. MSCI ESG Ratings helps investors identify environmental, social and governance (ESG) risks and opportunities within their portfolio. Netflix remains in the FTSE4Good Index Series following the Netflix The wonFTSE4Good the 2013 FT Index ArcelorMittal Boldness in Business June 2019 review. Series identifies Awards in the corporate andsocial environment catcompanies that demonstrates strongresponsibility environmental, egory (2013). and governance (ESG) practices. Netflix has been included in these indexes from 2003.

Netflix CEO and President, Reed Hastings, placed 32nd in

theachieved Top-100 Leadership list of the most powerful peoIn 2018, Netflix levelenvironmentally A- in the CDP Cliin Sweden and the only representative from the conmate Changeple rating. This indicates that Netflix has implestruction sector (2011). mented actions to effectively manage the environmental impacts related to climate change .This result indicates Netflix has implemented a range of actions to manage climate Amid concerns for the LGBTQ+ community, Netflix joined change, both in its own operations and beyond, including 55 other U.S. companies in advocating for equality and legal verification or assured emissions data. Netflix has participrotections, organized by the Human Rights Campaign. pated in the climate change program since 2007 and cliHuman Rights Campaign Foundation, Best Place to Work in mate change supply chain program since 2008. the United States for 2019.

RECOGNITION AND AWARDS 35

Netflix won the 2013 FT ArcelorMit Awards in the corporate responsibi egory (2013).

Netflix CEO and President, Reed H the Top-100 list of the most environ ple in Sweden and the only represe struction sector (2011).

Amid concerns for the LGBTQ+ co 55 other U.S. companies in advoca protections, organized by the Hum Human Rights Campaign Foundati the United States for 2019.

RECOGNITION AND AWARDS 35

STOR STORIE VISI IES O TN HSAT ATNH ID N AT S MPIISSI IN RSEP ON IRE STATEMENT

FELIX FELIX FINKBEINER FINKBEINER

For over 20 years, Netflix has engraved its name as a top brand with incontestable quality, thanks to our mission and vision statements that emphasize our undivided attention to give the best wherever it operates. The vision statement of a company donates the picture of where the management wants the company to be in over a specific period of time FelixinFinkbeiner Felix Finkbeiner has been has working beensteadily workingsince steadily he was since a he child was a child terms of success. Based on this, our vision statement targets planting planting trees to combat trees to the combat effects theofeffects climate ofchange. climate He change. He to be the model for the rest of on-demand video servicespoke pro- to spoke the United to the Nations UnitedGeneral NationsAssembly General Assembly when he when was he was viders. An ambition supported by our mission statement. just nine years just nine oldyears aboutold theabout inaction thehe inaction saw from he saw adults from who adults who

were supposed were supposed to be preserving to be preserving the planetthe forplanet the future. for the future. RealizingRealizing that he and thathis hepeers and his would peers bewould living through be livingthe through the consequences consequences of their passivity, of their passivity, Finkbeiner Finkbeiner started the started environthe environmental group mental Plant-for-the-Planet, group Plant-for-the-Planet, which then which partnered then partnered with with the UN’s the Billion UN’s Tree Billion campaign. Tree campaign. Together,Together, they havethey set ahave newset a new planting goal planting of one goal trillion of one trees, trillion or about trees, or 150 about trees150 for every trees for every person on person Earth.on Earth. The organization The organization also prompted also prompted the first scientific, the first scientific, full-scale full-scale global tree global count, treewhich count, is which now aiding is now NASA aiding in NASA an ongoing in an ongoing study of study forests’ of abilities forests’ to abilities store carbon to storedioxide carbon and dioxide theirand their potential potential to better protect to betterthe protect Earth.the In many Earth.ways, In many Finkbeiner ways, Finkbeiner has donehas more done thanmore any other than any activist other toactivist recruit to youth recruit to the youth cli-to the climate change matemovement. change movement. Plant-for-the-Planet Plant-for-the-Planet now has an now army has an army Our mission statement resounds what we are best known of 55,000of“climate 55,000 justice “climate ambassadors,” justice ambassadors,” who havewho trained haveintrained in for, providing outstanding video entertainment services. It workshops one-day one-day workshops to become to climate becomeactivists climate in activists their home in their home also shows how we balance the satisfaction of our customers communities. communities. Most of them Mostare of them between are between the ages the 9 and ages 12.9 and 12. with the financial needs of our stakeholders. “Felix is a“Felix combination is a combination of inspirational of inspirational and articulate,” and articulate,” says says Netflix’s vision statement is “Becoming the best global Thomas Crowther, Thomas Crowther, an ecologist an ecologist who conducted who conducted the tree count the tree count entertainment distribution service.” The vision statement whileisworking whileatworking Yale University at Yale University in Connecticut. in Connecticut. “A lot of people “A lot of people all about what the company wants to achieve. It stresses arethe goodare at one good of at those one things. of thoseFelix things. is really Felixgood is really at both.” good at both.” desire to set a quality bar in the provision of on-demand video “We’re going “We’re to be going the to victims be theofvictims climateofchange. climateItchange. is in ourIt is in our services. Specifically, this mission statement is a reflection own self-interest own self-interest to get children to getto children act,” he tosays. act,” “At he says. the same “At the same of the leadership position Netflix aspires to attain and secure time, I don’t time, think I don’t we can thinkgive we up canon give thisup generation on this generation of adults of adults in the country and the world. and wait and 20 orwait 30 years 20 or 30 for years our generation for our generation to come to power. come to power. We don’tWe have don’t thathave time.that All time. we can Alldo weiscan push dothem is push in the them in the right direction.” right direction.” (Parker. National (Parker. Geographic. National Geographic. 2018) 2018)

We promise our customers stellar service, our suppliers a valuable partner, our investors the prospects of sustained profitable growth, and our employees the allure of huge impact. “”

VISION AND 10 STORIES STORIES THAT INSPIRE THATMISSION INSPIRE 36 36

JADAV PAYENG Jadav Payeng has been working since 1979 to plant hundreds of trees to save his island, which is threatened by erosion. Northeast India’s Majuli Island, the world’s largest river island, was becoming a barren wasteland due to climate change. The Brahmaputra River that flows around it was eroding its shores at a steadily increasing rate. The island, home to 150,000 people, has lost over half its land mass to erosion since 1917. But Payeng, a modern-day Johnny Appleseed, is protecting it by turning it into an oasis with a forest larger than Central Park. The forest is now home to elephants, rhinos, tigers, and more, and Payeng must protect it from a new threat—the humans who want to use it for economic gain. There are several thousands of trees, including valcol, arjun (Terminalia arjuna), Pride of India (Lagerstroemia speciosa), royal poinciana (Delonix regia), silk trees (Albizia procera), moj (Archidendron bigeminum) and cotton trees (Bombax ceiba), among others. Bamboo alone covers an area of over 300 hs. The government only learned about Jadav's forest in 2008 when a herd of around 100 wild elephants strayed into it. Since then, they are regular visitors to the forest every year. They generally stay in the forest for around six months. The elephants have given birth to 10 calves in the forest. Imagine how fast the global goal to fight climate change could advance if only there were more Jadav Payengs in the world. Anyone can make a difference planting one tree at a time. (Fourtané. 2018)

STORIES THAN INSPIRE 37

VISI O N A N D M I SSI ON STATEMENT

We promise our customers stellar service, our suppliers a valuable partner, our investors the prospects of sustained profitable growth, and our employees the allure of huge impact. “” Our mission statement resounds what we are best known for, providing outstanding video entertainment services. It also shows how we balance the satisfaction of our customers T H A NK YOU with the financial needs of our stakeholders. Netflix’s vision statement is “Becoming the best global While this approach makes a pretty big impact in our world, entertainment distribution service.” The vision statement is we are still relative newcomers on this journey. We constantly all about what the company wants to achieve. It stresses the evaluate our environmental impact and explore new opportudesireour to sustainability set a quality bar in the provision of on-demand video nities to further efforts. services. Specifically, this missionthe statement is a reflection For now, you can find us reporting through EPA’s Green of the leadership position Netflix aspires to attain and secure Power Partner program and the MSCI Report. in the country and the world.

AND MISSION 10 THANK YOUVISION 38

how how many many trees trees have have youyou planted planted today? today?

THANK YOU THANK 39 YOU 39

ind A Acres, 23 Award, 34 B Bamboo, 37 C CEO, 9 Customer, 10 Climate, 18 Change, 18 Carboon, 19 CO2, 19 D Degree, 21 E Elephant, 37 Energy, 9 Earth, 2 Employee, 28 F Footprint, 19 Facts, 23

Forest, 23 Financial, 23 Felix, 36 G Goals, 12 Gas, 20 Global, 13 H I Island, 37 India, 37 Insects, 21 Investor, 10 Inspire, 36 J Jadav, 37 Journey, 9 K L Letter, 9 M Mission, 10

Medicine, 23 N NGO, 9 Netflix, 22 Net, 26 O P Power, 8 Planet, 9 Perform, 12 Planting, 12 Program, 12 Plants, 21 People, 23 Q Quarter, 27 R S Social, 28 Stories, 36 Storytellers, 8 Stakeholder, 9

Service, 10 T Tree, 20 U V Vision, 10 W Warming, 21 World, 30 X Y Yale, 36 Z

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NETFLIX SUSTAINABILITY REPORT 2019