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