4 4 5 Environmental and Soci al Responsibility The Corporation’s business is investing in projects operated by third parties and does not directly operate any of its assets. The projects on which the Corporation has royalties and streams are owned and operated by independent mining and energy companies which are typically publicly listed. Management clos ely monitors the Corporation’s portfolio of assets and engages with the operators of the projects on ESG matters but management is not responsible for the day-to-day operatio nal or development decisions at a project. While the Corporation does not control or influence the operations of any of the properties over which it has an interest, it is committed to responsible mining and energy extraction in all aspects of its investments including with respect to ESG issues, which are addressed through a combination of the following: policies, including ESG-specific policies, which guide investment decisions; due diligence process for new investments; contractual rights and obligations in royalty and stream agreements; contributions to projects to build community strength at the operations in which the Corporation is invested; and t ransparency in its disclosure. The approach taken by the Corporation has generated significant value for shareholders and has allowed it to acquire royalties and streams on projects operated by some of the best operators in the industry. The Corpor ation has adopted policies and performs extensive due diligence on potential inve stments to address ESG issues, including climate-related risks, and has adopted best practices in other areas of ESG including transparent disclosure aligned with the Task Force on Climate-related Financial Disclosures (“ T C F D ”) and Sustainability Accounting Standards Board (“S S A S B ”) frameworks. The Corporation has refrained from allocating capital to certain investments due to ESG issues. Detailed information can be found in the Corporation’s most recent Environmental, Social and Governance (ESG) Report available on the Corporation’s website at www.franco-nevada.com.