37 Message from our CEO Report Highlights Scope 1, 2 and 3 Primer Franco-Nevada’s Progression All of our emissions are calculated using In accordance with the GHG Protocol, emissions Franco-Nevada accounts for the following We recognize the increasing importance About Franco-Nevada the Greenhouse Gas Protocol Corporate associated with certain kinds of investments emissions applicable to our corporate for shareholders, ESG rating agencies and Accounting and Reporting Standard, the (e.g. majority equity holdings, loans with operations: Scope 1 (nil, as our offices others to have visibility of the carbon footprints most widely-used international accounting known use of proceeds, etc.) are required are not heated from the direct combustion of asset managers’, investment funds’ and Responsible tool for companies to understand, quantify, to be calculated and included as Scope 3, of natural gas or propane), Scope 2 (emissions royalty and streaming companies’ portfolios. Capital Allocation and manage GHG emissions. The Greenhouse Category 15 (Investments) emissions. For other relating to the use of electricity and steam for There have also been gradual improvements Gas Protocol (the “GHG Protocol”), launched alternative investments, including royalty and our offices) and Scope 3 (applicable categories in data availability for emissions relating to Community in 1998, categorizes a company’s GHG stream interests, emissions attributable to for our corporate operations include Category our investments. Starting in 2022, we have Contributions emissions into three scopes: such investments may optionally, but are not 1 (Purchased Goods and Services); Category disclosed estimated emissions attributable required to, be included in Scope 3, Category 5 (Waste); Category 6 (Business Travel); to our royalty and stream interests, comprising • Scope 1 emissions are direct emissions 15 (Investments), with the GHG Protocol and Category 7 (Employee Commuting). our Scope 3, Category 15 (Investments) Good Governance and from owned or controlled sources acknowledging that for many of these emissions. Please refer to the section Shareholder Alignment (e.g., emissions associated with fuel investments, investors may have minimal entitled Investment Footprint below. combustion in boilers, furnaces, vehicles). or no control or insight into the operations Diversity, Inclusion of the investees. and Well-Being • Scope 2 emissions are indirect emissions from the generation of purchased electricity To the extent that emissions relating to Climate Action or steam. investments are disclosed by investors, irrespective of whether such disclosure Climate Action • Scope 3 emissions are all other indirect is optional or mandatory, the GHG Protocol Commitments and Plans emissions that occur in the value chain provides that the “reporting company’s of the reporting company, including both Scope 3 emissions from investments Overall Carbon Footprint upstream and downstream emissions. are the Scope 1 and Scope 2 emissions Corporate Footprint The 15 categories of Scope 3 emissions of investees". are depicted in the adjacent GHG Investment Footprint Protocol diagram. Transparency and Guiding Principles “We recognize the increasing importance for shareholders, About this ESG Report ESG rating agencies and others to have visibility of the carbon footprints of asset managers’, investment funds’ Appendices and royalty and streaming companies’ portfolios... Starting in 2022, we have disclosed estimated emissions attributable to our royalty and stream interests...”