Message from our CEO 59 Report Highlights PHYSICAL RISKS About Franco-Nevada Potential Financial Impact for: Description of Physical Risks Our Operating Partners Our Company Responsible SUMMARY Capital Allocation Acute: Extreme weather events caused by global warming (e.g. droughts, floods, These events may lead to production delays and cessation of operations • Short-term delay (deferral) of Revenues Community hurricanes, etc.) Contributions Chronic: Gradual shifts in weather conditions (e.g. water scarcity, shifts in These shifts may lead to recurring production delays and cessations of • Longer-term and potentially recurring delays (deferrals) of Revenues Good Governance and rainfall patterns, rising sea levels, etc.) operations and increased operating costs to adapt to climate changes, which • Potential impact to valuation of Assets on balance sheet (e.g. impairment or may lead to projects being abandoned or placed on care and maintenance if write-off of assets) Shareholder Alignment adaptation costs erode anticipated profitability Diversity, Inclusion BY JURISDICTION and Well-Being CHILE • Reduction in annual precipitation rates is likely to exacerbate Chile’s pre-existing Main risks: Health and safety of employees; social license to operate as Revenue could be impacted in the short, medium or long-term due to Climate Action issues of water stress as well as the frequency and length of droughts increasing temperatures and decreasing rainfalls leads to loss of interruptions to production caused by physical climate hazards • Despite an overall trend towards decreasing precipitation, extreme rainfall biodiversity; inability to permit new mines or mine life extensions using Risk of stranded Assets: Low-medium events are expected to intensify ground water Transparency and Financial impacts to operations: Reduction in revenue due to production Guiding Principles • Chile is projected to experience lower rates of warming than the global delays; increased operational costs (i.e. repairs to operations, energy costs) average, yet rising temperatures still pose risks About this ESG Report NEVADA • Nevada is at high risk of extreme heat, with the increased severity and Main risks: Health and safety of employees; social license to operate given Revenue could be impacted in the short, medium or long-term due to Appendices frequency of heat waves posing a significant risk to people and projects water scarcity issues caused by extreme heat in some areas interruptions to production caused by physical climate hazards • There is a high likelihood that rising temperatures will increase the severity Financial impacts to operations: Reduction in revenue due to production Risk of stranded Assets: Low A: ESG Performance Table and intensity of droughts delays; increased operational costs (i.e. repairs to operations, energy costs) B: Operators’ Emissions • The risk of wildfires will increase, while flooding and storms may also become more common C: TCFD Disclosure PERU D: SASB Disclosure E: GRI Index • Temperatures are projected to rise in Peru, creating an increased risk of Main risks: Health and safety of employees; social license to operate given Revenue could be impacted in the short, medium or long-term due to extreme heat, while increased rainfall also raises the risk of flooding, water scarcity issues caused by extreme heat and droughts interruptions to production caused by physical climate hazards F: Sustainable landslides and storms Financial impacts to operations: Reduction in revenue due to production Risk of stranded Assets: Low Development Goals • The impact of climate change on precipitation rates is expected to vary delays; increased operational costs (i.e. repairs to operations, energy costs) considerably across Peru G: KPMG: Independent • Glacial retreat is occurring at an accelerated rate in Peru, increasing the risk Limited Assurance Report of floods and landslides H: Carbon Neutral Initiative • Climate change could exacerbate existing water stress, creating challenges for mining operations