Message from our CEO SUPPLY CHAIN 17 Report Highlights We have a Supplier Code of Conduct, which Suppliers are also encouraged to: Significant Providers* of Office Supplies in 2023 About Franco-Nevada sets out our expectations for organizations, • Reduce GHGs; including their employees and representatives, • Preserve water and minimize ESG Initiatives, Plans, Targets & Commitments who supply goods and services to us (collectively, water pollutants; Responsible our “Suppliers”). The Supplier Code of Conduct • Maintain soil, biodiversity and • In-store recycling solutions and eco-responsible products and packaging and leveraging Bullfrog is delivered to Suppliers and we require in our ecosystem quality; Power to help support transition from fossil fuels to renewable energy. Capital Allocation • Commitment to reduce operational carbon emissions by 35% and divert 90% of waste from contractual arrangements that they comply • Reduce resource waste and foster fulfillment centres to recycling by 2028. Due Diligence Process with such code of conduct. Although optimal resource use; Franco-Nevada has certain suppliers of office • Incorporate climate change risk • Wastepaper packaging and recycling initiative, electronic product stewardship helping to design, Ongoing Asset Management promote and implement sustainable solutions for end-of-life electronics, and battery recycling. supplies for our corporate operations, most assessment into their risk management • Commitment to a sustainable future and environmental conservation by way of The Clean Earth Key ESG Factors of our Suppliers are technical, ESG and other procedures; and Campaign and the adoption of a corporate environmental charter along with a net zero by 2050 commitment, with goal to reduce absolute Scope 1 and Scope 2 GHG emissions by 42% and Health and Safety consultants who provide information and advice • Measure and publicly report on absolute Scope 3 GHG emissions (category 1 and 11) 25% by 2030. to our company to support and supplement their climate change risk and Carbon Footprint our due diligence when evaluating royalty environmental performance. • Environmental programs to limit waste, conserve energy, promote recycling and minimize use of harmful chemicals, and community initiatives focussed on education, entrepreneurism and Water Management and Risk and stream opportunities. strengthening communities. In addition, in accordance with our Climate • Various environmental targets, including achieving zero waste in 30% of distribution centres Tailings Management Suppliers are expected to: Action Policy (described on page 35), before by 2025 and a 46% reduction of absolute Scope 1 and Scope 2 GHG emissions by 2030. Biodiversity • Conduct their business activities in transacting with any significant provider • Energy efficiency, cultivating inclusion through an inclusive and diverse workforce, advancing digital Supply Chain compliance with laws and standards in of goods for our corporate operations, we inclusion (UNICEF’s Giga initiative), and upholding trust through artificial intelligence practices. the jurisdictions in which they operate; ensure that such supplier has commitments, • Net zero by 2050 commitment, with a reduction of Scope 1 and Scope 2 GHG emissions by 50% by 2030 and sourcing 100% of electricity from renewable sources across all Dell Community • Prevent conflicts of interest with plans, targets and initiatives aligned with Technologies facilities by 2040. Contributions Franco-Nevada; net-zero emissions by 2050 or sooner. • Reducing waste and packaging, protecting natural resources, and supporting a responsible and • Employ individuals above the legal age more diverse supply chain. of employment, not to use forced or slave Failure of any of our Suppliers to comply with • Net zero by 2040 commitment, with a goal to power all operations with 100% renewable energy Good Governance and labour, meet minimum wage requirements our Supplier Code of Conduct may result in by 2025 (five years ahead of 2030 target). Shareholder Alignment and not exceed working hour and day the termination of our relationship with the • ‘Go Green’ Mandate that provides customers with expanded options in the areas of responsibility, regulations; Supplier. To date, we have not been aware sustainability and minimization of waste, including biodegradable packaging, recycling programs, Diversity, Inclusion • Recognize freedom of association and of any such failure by our Suppliers to comply and certified fair trade and sustainable product offerings. and Well-Being the right to collective bargaining; with our Supplier Code of Conduct. * "Significant provider" means a supplier of goods providing 10% or more of our office • Refrain from discriminating against supplies (based on overall costs) Climate Action their employees; This year marks our first year of reporting • Respect the dignity of their own employees under Canada’s recently enacted Fighting “... before transacting with any Transparency and and others, adhere to principles of diversity Against Forced Labour and Child Labour in Related Policies signi昀椀cant provider of goods for our and maintain a respectful workplace; and Supply Chains Act. Our report outlines the and Statements: Guiding Principles • Afford equality of opportunity to all people. steps we have taken during 2023 to prevent • Supplier Code of Conduct corporate operations, we ensure that and reduce the risk that forced labour or child • Climate Action Policy such supplier has commitments, plans, About this ESG Report labour is used in our business or supply chain. • Fighting Against Forced Labour A copy of our inaugural report is available and Child Labour: Steps Taken targets and initiatives aligned with Appendices on our website. by Franco-Nevada in 2023 net-zero emissions by 2050 or sooner.”