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Netflix's Carbon Footprint

Netflix, a prominent figure in the entertainment industry, wrestles with substantial hurdles in lessening its carbon footprint. Key areas demanding attention for carbon reduction within Netflix's operations encompass video streaming, film production, mobile gaming, and data centers. In response to these challenges, Netflix has set forth specific objectives to reduce its carbon footprint. These objectives involve halving emissions by 2030 and achieving net zero emissions from 2022 onwards, in alignment with global net zero initiatives. Furthermore, Netflix has enacted Scope 3 "value chain" decarbonization targets, targeting emissions associated with value chain activities such as procurement, capital investments, and corporate travel. To meet these targets, the company employs diverse strategies, including demand signaling, technology advancements, and educational initiatives. Despite these endeavors, Netflix acknowledges its limitations in carbon reduction, particularly emphasizing that a significant portion of its 2021 carbon footprint stemmed from the physical production of content. Addressing these challenges stands as a pivotal endeavor for Netflix as it endeavors to establish itself as an environmentally responsible entity within the entertainment landscape.

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One key area demanding attention for carbon reduction is Netflix’s use of data centers. The energy intensity of global data centers has been decreasing by 20% since 2010 yearly, marking substantial progress in energy efficiency. However, despite this improvement, data centers and networks still consume around 2-3% of global electricity, contributing to 0.6% of total greenhouse gas emissions. Acknowledging the pressing need to combat climate change, Netflix is dedicated to collaborating across the value chain to curb these emissions. This initiative resonates with the potential of Information and Communication Technology for Decarbonization (ICT4) to drive reductions in carbon-intensive sectors. Netflix reaffirms its commitment to reducing its carbon footprint, especially in film production, and to fostering advancements in internet-based services in harmony with climate science. Notably, streaming one hour of video translates to approximately 55 grams of carbon dioxide equivalents, comparable to microwaving four bags of popcorn or boiling three kettles of water, underscoring the significance of mindful consumption in the digital era.

Another crucial area demanding carbon reduction is Netflix’s Video streaming service. Analysis reveals that 3% of Netflix’s 2022 carbon footprint by business activity is attributed to streaming. In Europe, the estimated average carbon footprint for video streaming, using the conventional allocation approach, is approximately 55 grams of CO2 per hour. Analysis of the carbon footprint of video streaming reveals that a significant portion of emissions originates from viewing devices and home routers, with viewing devices contributing between 30 to 55 grams of carbon dioxide per hour, and home routers accounting for between 5 to 25 grams of carbon dioxide per hour. Surprisingly, data centers have the least impact on the grams of carbon dioxide per hour as of the European average in 2020. Other contributing factors include TV peripherals, network transmission, and data centers. In the short term, there is a slight uptick in energy consumption and carbon emissions, but it doesn't significantly affect the overall energy and emissions levels at the system level. However, in the medium term, the growth in demand prompts the expansion of network infrastructure, leading to higher embodied carbon emissions from manufacturing network equipment and the potential for an uptick in base load network energy consumption. Netflix's sustainability website references the Carbon Trust's report on the impact of video streaming white paper, noting that the average carbon footprint of streaming one hour of video is notably lower than previously assumed. However, Netflix found that the report didn't address the subsequent crucial question: what actions should be taken to address the environmental impact? This question is particularly critical for industries involved in the life cycle emissions of internet-based services like streaming, including data center operators, internet service providers, device manufacturers, and electric utilities. In conclusion, examining the environmental effects of video streaming highlights the importance of taking action across industries to reduce carbon emissions and promote sustainability.

Another vital focus area for carbon reduction is Netflix’s Film productions. Responding to the revelation that production-related operations significantly contribute to Netflix's carbon footprint, the company has redoubled its efforts to curtail emissions in this domain. An astounding 59% of Netflix's carbon footprint in 2022 stemmed from production-related activities, underscoring the magnitude of this impact. Recognizing this substantial environmental footprint, Netflix has made the adoption of cleaner technologies a top priority in its production processes. Key initiatives include transitioning from conventional diesel generators to eco-friendly mobile power equipment and augmenting the usage of electric vehicles (EVs) and other low-emission transportation modes. Commencing in 2022, Netflix embarked on the deployment of these sustainable technologies across more than 60% of the productions under its domain. Through the embrace of these eco-conscious practices, Netflix endeavors to markedly diminish the environmental impact associated with content creation, showcasing its unwavering dedication to environmental responsibility within the entertainment industry.