Responsible Capital Allocation Community Contributions Good Governance & Shareholder Alignment Diversity, Inclusion & Well-Being Climate Action Transparency & Guiding Principles Appendices 59 Climate Strategy The actual and potential impacts of climate-related risks and opportunities on our business, strategy, and financial planning Climate-Related Risks As demonstrated in Resilience of our Portfolio long-term horizons and such risks are identified scenario) and SSP5-8.5 (high emissions As we have a small workforce operating solely in this appendix, exposure to these risks is and are part of our climate-related strategy and scenario) for 2030 and 2050 and relied within office environments, we are not directly substantially mitigated for our company. Notably, decision making, as appropriate. Certain acute on publicly available information and exposed to most climate-related risks that mining of the four major categories of financial impact physical risks will typically involve a short-term projections, including the World Bank’s and energy operators face. Notwithstanding, set out by the TCFD (Revenues, Expenditures, impact (less than 1 year), chronic physical risks, Climate Change Knowledge Portal. The the climate-related risks of the operators of the Assets and Liabilities, and Capital and Financing)*, regulatory and legal risks, market risks and assessment is high level in nature (e.g. projects in which we hold royalty and stream the impacts of climate-related risks may affect reputational risks can lead to medium-term physical risks applying generally across interests can pass through to us. Climate-related our Revenues (Income Statement) and our Assets (1 to 5 years) and long-term (5 years+) impacts. the country or applicable jurisdiction and incidents, trends or developments have the (Balance Sheet) but are unlikely to increase our not necessarily relating to any of Franco- potential to adversely impact production at an Expenditures (Income Statement) or Liabilities In 2022, we worked with Critical Resource Nevada’s particular assets) and does not operation and, by extension, royalty or stream (Balance Sheet) and are unlikely to materially to expand upon past disclosure relating to address any additional risks or mitigating payments or deliveries to our company. adversely impact our access to Capital and climate-related risks impacting our operators factors (e.g. topographical, sunk capital Additionally, risks related to changes in the Financing (Balance Sheet). and our company. In particular, Critical Resource costs to build a mine, relative contribution market price of commodities that underlie our has provided assessments, which are summarized of mine to a country’s GDP, etc.) specific royalty and stream interests, which changes The following discussion describes our operators’ in the tables on the following pages, of: to Franco-Nevada’s assets in these may be driven by climate-related events, trends climate-related risks, the potential financial jurisdictions. or sentiments, can impact our revenues. impact for our operators and their corresponding • Physical climate risks specific to certain financial impact to our company. Given the jurisdictions where we have a high • Socio-political, regulatory and legal risks, breadth and diversity of our royalty and stream concentration of assets and/or material market risks and reputational risks that portfolio and due to the fact that most of our assets. In conducting its geographic might impact key commodities in our royalty and stream interests are perpetual or physical risk assessment for Ontario, commodity mix (gold, silver, PGMs, iron have long durations, we have exposure to each Nevada, Panama, Chile and Peru, Critical ore, energy (oil, gas, NGL) and nickel) in of the risks below over short, medium and Resource applied SSP1-2.6 (low emissions the transition to a low-carbon economy. * “Implementing the Recommendations of the Task Force on Climate-related Financial Disclosures”, Task Force on Climate-related Financial Disclosures (June 2017).