NETFLIX, INC. | Report on political spending at Netflix, Inc.

Status
Filed
Previous AGM date
Resolution details
Company ticker
NFLX
Resolution ask
Report on or disclose
ESG theme
  • Environment
ESG sub-theme
  • Net Zero / Paris aligned
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Consumer Discretionary
Company HQ country
United States
Resolved clause
Shareholders request Netflix issue a climate transition plan, above and beyond existing disclosure, describing how it intends to align its operations and full value chain emissions with the Company’s existing science-based target. The plan should be published at reasonable expense, exclude confidential information, and detail progress and any plan updates on an annual basis.
Whereas clause
Recognizing the business imperative to mitigate climate change, Netflix, Inc. (“Netflix” or “the Company”) set a near-term science-based greenhouse gas (GHG) reduction target validated by the Science Based Targets initiative. The Company specifically plans to reduce its absolute operational emissions by 46% and value chain emissions intensity by 55% by 2030.

However, even companies with robust climate goals face increasing reputational, regulatory, and litigation risk when their goals are not backed by credible plans.[1],[2] Given the clear business risks, investors seek a climate transition plan (“transition plan”) that outlines how Netflix plans to meet its climate target.

Transition plans differ from the Company’s existing sustainability disclosures - which primarily report previous accomplishments - in that they provide a roadmap of actions a company will take to align its business strategies with its GHG emissions reduction goals. Valuable transition plan disclosure includes action steps, interim targets, key performance indicators, assumptions, uncertainties, and discussion of climate scenario analyses, all of which could better inform Netflix shareholders of the Company’s path toward its science-based target.

In its 2024 Sustainability Report, Netflix provides a short-term forecast of its GHG emissions and identifies energy efficiency, vehicle electrification, clean mobile power, and renewable energy as levers to reach its 2030 target. It also mentions its partnership with Amazon Web Services to reduce emissions from cloud computing. However, Netflix’s disclosure falls well short of a comprehensive transition plan. Even companies with more complex operations and value chains have produced thorough and well-crafted transition plans, suggesting that Netflix could do the same.[3],[4],[5],[6]

Further, transition plans are now a common investor expectation. One in four companies reporting to CDP (5,906) disclosed having 1.5 degrees Celsius-aligned transition plans and a further 36% (8,200) plan to develop one.[7] Therefore, to increase accountability and support the achievement of its targets, we believe Netflix should also develop a comprehensive climate transition plan.
Supporting statement
In developing the plan, we recommend considering, at management’s discretion:

• Forward-looking, near-term quantitative and qualitative strategies, metrics, and milestones for achieving the Company's GHG emissions reduction targets across decarbonization, policy advocacy, and just transition components;

• Guidance by advisory groups such as the Transition Plan Taskforce, Task Force for Climate-Related Financial Disclosures, CDP, and Climate Action 100+

• Supporting targets for energy efficiency, vehicle electrification, clean mobile power, and renewable energy, and other measures deemed appropriate by management.

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