Message from our CEO Report Highlights About Franco-Nevada Responsible Capital Allocation Community Contributions Good Governance and Shareholder Alignment Diversity, Inclusion and Well-Being Climate Action Transparency and Guiding Principles About this ESG Report Appendices A: ESG Performance Table B: Operators’ Emissions C: TCFD Disclosure D: SASB Disclosure E: GRI Index F: Sustainable Development Goals G: KPMG: Independent Limited Assurance Report H: Carbon Neutral Initiative 66 Iron Ore: Steel is essential to many aspects of modern life and is a key component of low-carbon technologies, from electric vehicles to wind turbines. The production of low-carbon steel will be critical to the transition to a low-carbon economy and for the achievement of climate goals. Our company has exposure to iron ore operations that produce products suitable for low carbon steel production. We have an equity ownership in Labrador Iron Ore Royalty Corporation (“LIORC”), which has a minority ownership interest in Iron Ore Company of Canada (“IOC”) and holds royalties over IOC’s operations in Newfoundland and Labrador, and we have royalty debentures covering Vale’s Northern and Southeastern System operations in Brazil. IOC pellets and concentrate are high grade products with world leading low alumina and ultra-low phosphorus, beneficial to the iron and steel industry. These pellets are high quality with a clean chemistry, that helps reduce the carbon footprint when used in the iron and steel industry compared to lower quality grades and forms of iron ore. In early 2021, IOC, the operator at Carol Lake where we indirectly hold interests through our LIORC equity ownership, announced an initiative that will explore the viability of transforming iron ore pellets into low-carbon hot briquetted iron, a low-carbon steel feedstock, using green hydrogen generated from hydro electricity in Canada. Vale supplies iron ore products that require less energy use in steel blast furnaces, thereby reducing emissions. One example is its Brazilian Blend Fines, a blend of ores produced in Carajás and Minas Gerais, with a higher iron content and fewer contaminants. Vale has recently partnered with Kobe Steel and Mitsui & Co. to provide low-carbon solutions and technologies to the steel industry. Natural Gas: Using natural gas for energy results in lower emissions of nearly all types of air pollutants and carbon dioxide than burning coal or petroleum products. For this reason, natural gas is viewed by many as a “bridge” fuel as renewable energy sources become increasingly more cost-effective and widespread. A 2019 World Energy Outlook report* found that switching from coal to gas saved approximately 500 million tCO 2 from 2010 to 2018, an effect equivalent to putting an additional 200 million electric vehicles running on zero-carbon electricity on the road over the same period. Our company’s recent additions to our energy portfolio have been on U.S. oil to natural gas plays, including our 2019 royalty acquisition on Range Resources’ liquids-rich natural gas properties in the Marcellus shale in Pennsylvania and our 2020 and 2023 royalty portfolio acquisitions in the Haynesville shale, in Louisiana and Texas, one of the most active gas plays in North America. In 2023, natural gas accounted for approximately 26% of our energy revenues and approximately 4% of our overall revenues, a decrease from 2022, due to a year-over-year reduction in natural gas prices. * “The Role of Gas in Today’s Energy Transitions”, World Energy Outlook, July 2019. “Our diversified royalty and streaming portfolio is well positioned to participate in opportunities relating to the transition to a low-carbon economy.“