Responsible Capital Allocation Community Contributions Good Governance & Shareholder Alignment Diversity, Inclusion & Well-Being Climate Action Transparency & Guiding Principles Appendices 38 Scope 1, 2 and 3 Primer To the extent that emissions relating to As Franco-Nevada does not operate, develop “We recognize the All of our emissions are calculated using the investments are disclosed by investors, or conduct exploration for the operations in increasing importance for Greenhouse Gas Protocol Corporate Accounting irrespective of whether such disclosure which we have royalty and stream interests, and Reporting Standard, the most widely-used is optional or mandatory, the GHG Protocol and does not exercise control over such operations shareholders, ESG rating international accounting tool for companies provides that the “reporting company’s Scope given the passive nature of our interests, we have to understand, quantify, and manage GHG 3 emissions from investments are the Scope 1 not previously included Financed Emissions agencies and others to emissions. The Greenhouse Gas Protocol (the and Scope 2 emissions of investees.” in our Scope 3 emissions. “GHG Protocol”), launched in 1998, categorizes have visibility of the a company’s GHG emissions into three scopes: Franco-Nevada’s Progression We recognize the increasing importance for Franco-Nevada accounts for the following shareholders, ESG rating agencies and others carbon footprints of asset • Scope 1 emissions are direct emissions emissions applicable to our corporate to have visibility of the carbon footprints of managers’, investment from owned or controlled sources (e.g., operations: Scope 1 (nil, as our offices are not asset managers’, investment funds’ and royalty emissions associated with fuel combustion heated from the direct combustion of natural and streaming companies’ portfolios. There funds’ and royalty and in boilers, furnaces, vehicles). gas or propane), Scope 2 (emissions relating have also been gradual improvements in to the use of electricity and steam for our data availability for emissions relating to streaming companies’ • Scope 2 emissions are indirect emissions offices) and Scope 3 (applicable categories our investments. For these reasons, we from the generation of purchased electricity for our corporate operations include Category have included in this ESG Report estimated portfolios... we have or steam. 1 (Purchased Goods and Services); Category 5 emissions attributable to our royalty and (Waste); Category 6 (Business Travel); and stream interests. Please refer to the section included in this ESG Report • Scope 3 emissions are all other indirect Category 7 (Employee Commuting)). entitled Investment Footprint below. emissions that occur in the value chain estimated emissions of the reporting company, including both attributable to our royalty upstream and downstream emissions. The 15 categories of Scope 3 emissions and stream interests.” are depicted in the adjacent GHG Protocol diagram. In accordance with the GHG Protocol, emissions associated with certain kinds of investments (e.g. majority equity holdings, loans with known use of proceeds, etc.) are required to be calculated and included as Scope 3, Category 15 (Investments) emissions. For other alternative investments, including royalty and stream interests, emissions attributable to such investments may optionally, but are not required to, be included in Scope 3, Category 15 (Investments), with the GHG Protocol acknowledging that for many of these investments, investors may have minimal or no control or insight into the operations of the investees. Source: GHG Protocol