Responsible Capital Allocation Community Contributions Good Governance & Shareholder Alignment Diversity, Inclusion & Well-Being Climate Action Transparency & Guiding Principles Appendices 1 Message from our CEO workforce, limit the environmental impacts of You will see these project-specific priorities General Focus their projects and provide net benefits for their described in detail in this ESG Report, including Climate action is an important priority for our communities. We evaluate environmental and disclosure relating to how the operators of our company that relates to both our investments and community impacts along with the technical principal assets have performed in each category. our own corporate operations. We are committed aspects of operations during our due diligence to consider the decarbonization efforts and for potential opportunities. We also seek to Our second investment-oriented effort is net-zero alignment of operators and operations negotiate operator commitments to conduct partnering with our operators on initiatives to when making investment decisions and to achieve operations in accordance with best operating benefit the communities where our royalty and net-zero emissions by 2050 with respect to our and sustainability practices and to provide stream assets are located. In 2022, we increased own corporate operations. Our climate-related transparent reporting on their operations. our funding of community contributions and plans and commitments have been formalized made several new commitments. in our recently adopted Climate Action Policy, Our principal ESG-related focuses when making which is described in this ESG Report. acquisitions are as follows: Corporate Focus We are committed to responsible governance We are also committed to providing transparency • Health and safety track records, practices to ensure integrity in our dealings, in all ESG matters relating to our business. In this including evaluating each project’s compliance with our undertakings and ESG Report, we have measured, disclosed and safety performance statistics. alignment with our shareholders. Our Board and attributed to our Scope 3 reporting, proportional management team are substantial shareholders greenhouse gas emissions from our royalty Paul Brink, President & CEO • Carbon footprints and climate-related of the company, currently holding more than and stream interests. We have also provided commitments, plans, targets and initiatives US$200 million in stock, and we treat shareholder disclosure aligned with the Task Force on I am pleased to share our ESG Report, which and, when available, an assessment funds as our own, with industry-leading low G&A, Climate-related Financial Disclosures (TCFD) describes the progress we and our partners of emissions-related metrics, such even relative to Gold ETF fees. recommendations and the Sustainability have made on environmental, social and as carbon intensity. Accounting Standards Board (SASB) framework, governance (“ESG”) issues and on our We seek to maintain a safe and supportive and first-time disclosure aligned with the Global expanded commitments to sustainability. • Water risk, use and discharge and, to environment for our team members and remove Reporting Initiative (GRI) standards. the extent applicable, a review of water barriers and promote diversity and inclusion As a royalty and streaming company, we do not consumption and water intensity within our company, our communities, and We continue to rank highly with leading ESG operate mines, develop projects or conduct performance indicators. in our industry. We actively seek out diverse rating agencies, which is demonstrative of our exploration. Our ESG efforts fall into two candidates in our hiring processes and have ongoing dedication to fulfilling our investment categories: those relating to the operators, • The design of planned or existing waste and adopted objective diversity targets for our and corporate commitments and to increasing operations and local communities, where tailings storage facilities and commitments Board of Directors and senior management. transparency in our ESG disclosure. Thank you we deploy capital for acquisitions and those from operators to implement and maintain We also seek to promote diversity in the mining for your continued support of Franco-Nevada. applicable to our corporate operations, including international tailings standards. industry. We have made a number of donations We look forward to speaking with many of you to our management, directors, and suppliers. in furtherance of our BlackNorth Initiative over the coming months. • The impact on biodiversity and ecosystems pledge and, in 2022, expanded the number Investment Focus through project lifecycle, including of Franco-Nevada Diversity Scholarship awards. Our shareholders expect us, and we are preliminary assessments of impacts, life Paul Brink committed, to allocate capital to responsible of project “no-net-loss” commitments, President & CEO operators that provide safe workplaces for their and rehabilitation and reclamation.