Message from our CEO 58 Report Highlights The actual and potential impacts of climate-related risks and CLIMATE STRATEGY | opportunities on our business, strategy, and financial planning About Franco-Nevada Responsible Capital Allocation Climate-Related Risks Community As we have a small workforce operating solely Statement) and our Assets (Balance Sheet) In particular, we have provided assessments, • Socio-political, regulatory and legal risks, Contributions within office environments, we are not directly but are unlikely to increase our Expenditures which are summarized in the tables on the market risks and reputational risks that exposed to most climate-related risks that mining (Income Statement) or Liabilities (Balance following pages, of: might impact key commodities in our Good Governance and and energy operators face. Notwithstanding, Sheet) and are unlikely to materially adversely commodity mix (gold, silver, PGMs, iron Shareholder Alignment the climate-related risks of the operators of the impact our access to Capital and Financing • Physical climate risks specific to certain ore, energy (oil, gas, NGL) and nickel) in projects in which we hold royalty and stream (Balance Sheet). jurisdictions where we have a high the transition to a low-carbon economy. interests can pass through to us. Climate-related concentration of assets and/or material Diversity, Inclusion incidents, trends or developments have the The following discussion describes our assets. In conducting its geographic and Well-Being potential to adversely impact production at operating partners’ climate-related risks, physical risk assessment for Ontario, an operation and, by extension, royalty or the potential financial impact for our operating Nevada, Panamá, Chile and Peru, Critical Climate Action stream payments or deliveries to our company. partners and their corresponding financial Resource applied SSP1-2.6 (low emissions Additionally, risks related to changes in the impact to our company. Given the breadth scenario) and SSP5-8.5 (high emissions Transparency and market price of commodities that underlie our and diversity of our royalty and stream portfolio scenario) for 2030 and 2050 and relied Guiding Principles royalty and stream interests, which changes and due to the fact that most of our royalty on publicly available information and may be driven by climate-related events, trends and stream interests are perpetual or have projections, including the World Bank’s or sentiments, can impact our revenues. long durations, we have exposure to each Climate Change Knowledge Portal. The About this ESG Report of the risks below over short, medium and assessment is high level in nature (e.g. As demonstrated in Resilience of our Portfolio long-term horizons and such risks are identified physical risks applying generally across the Appendices in this Appendix, exposure to these risks is and are part of our climate-related strategy country or applicable jurisdiction and not substantially mitigated for our company. Notably, and decision making, as appropriate. Certain necessarily relating to any of Franco-Nevada’s A: ESG Performance Table of the four major categories of financial impact acute physical risks will typically involve a particular assets) and does not address B: Operators’ Emissions set out by the TCFD (Revenues, Expenditures, short-term impact (less than 1 year), chronic any additional risks or mitigating factors Assets and Liabilities, and Capital and physical risks, regulatory and legal risks, (e.g. topographical, sunk capital costs C: TCFD Disclosure Financing)*, the impacts of climate-related market risks and reputational risks can lead to build a mine, relative contribution of * “Implementing the Recommendations of the Task risks may affect our Revenues (Income to medium-term (1 to 5 years) and long-term mine to a country’s GDP, etc.) specific to Force on Climate-related Financial Disclosures”, D: SASB Disclosure Task Force on Climate-related Financial Disclosures E: GRI Index (5 years+) impacts. Franco-Nevada’s assets in these jurisdictions. (June 2017). F: Sustainable Development Goals G: KPMG: Independent Limited Assurance Report H: Carbon Neutral Initiative