14 Message from our CEO Report Highlights About Franco-Nevada Responsible Capital Allocation Due Diligence Process Ongoing Asset Management Key ESG Factors Health and Safety Carbon Footprint Water Management and Risk Tailings Management Biodiversity Supply Chain Community Contributions Good Governance and Shareholder Alignment Diversity, Inclusion and Well-Being Climate Action Transparency and Guiding Principles About this ESG Report Appendices B I O D I V E R S I T Y * The World Benchmarking Alliance is a United Nations organization launched in 2018 to ensure that business impact is measured, in an effort to boost motivation and stimulate action for a sustainable future for everyone. The Ecosystems and biodiversity measurement area assesses the extent to which companies understand their impacts and dependencies on nature as well as how they tackle their main pressures on ecosystems and biodiversity. It is composed of sixteen indicators covering topics such as land and sea use change, direct exploitation and invasive alien species. Operators’ and operational impacts on biodiversity are carefully considered by Franco-Nevada when deciding where to deploy capital (for further information, please see the Due Diligence Process section). The ecological profile of a mining or energy company or project can be difficult to assess, as no two environments are the same, and operators’ plans and actions may be difficult to quantify using universal standards or metrics. Franco-Nevada reviews the potential impact on biodiversity and ecosystems throughout the lifecycle of a project, including preliminary strategic assessments of biodiversity impacts caused by project development, life of project “no-net-loss” commitments to offset unavoidable impacts on biodiversity through regional conservation activities, and plans for site rehabilitation and reclamation upon project closures. We track the environmental impacts of certain of our existing assets and seek to partner with operators to contribute to biodiversity-related initiatives at projects where we have royalty and stream interests. We have included on these pages the World Benchmarking Alliance: Nature Benchmark, Ecosystems and Biodiversity rankings for our Top Mining Producers in 2023. On the next page, we have also highlighted the performance and some of the biodiversity commitments and initiatives by our Top Mining Producers, including an in-depth look at three of our Top Mining Assets, Cobre Panamá, Tasiast and Vale’s Northern and Southeastern Systems, which information is derived from the most recent sustainability reports of First Quantum, Kinross and Vale, respectively. Out of 97 global metals and mining companies Out of 389 global companies from all industries 1 4 8 25 17 51 25 81 26 82 30 104 54 198 NR NR NR NR NR NR Our Top Mining Producers: 70 % • have formalized commitments not to explore or mine in World Heritage Sites • have commitments to securing a net neutral or positive impact on biodiversity at their operations 60 % • have submitted responses to the 2022 Carbon Disclosure Project (CDP) forests questionnaire • are WGC and/or ICMM members, which have biodiversity standards and commitments for members 50 % • are members of the TNFD Forum and/or plan on developing biodiversity frameworks that incorporate elements of the TNFD Top Mining Producers Ranked: World Benchmarking Alliance: Nature Benchmark, Ecosystems and Biodiversity ranking*