Message from our CEO 73 Report Highlights BIPOC* Other N/A** ESG Considerations ESG Policies and Committee Charters About Franco-Nevada in Due Diligence Process Refer to the following policies and committee Senior Executive Management (5 - CEO, CFO, CLO, SVPs) 2 3 0 We believe that proper consideration of ESG charters (each available on our website) that Responsible Other Executive Management (10 - President (FNB), VPs) 4 6 0 risks in connection with the companies, projects govern the incorporation of ESG factors in and jurisdictions in which we seek to deploy our investment decisions and other aspects Capital Allocation Non-Executive Management (5 - Directors, Controller) 1 4 0 capital will enhance long-term performance of of our business: All Other Employees (20) 11 9 0 our company and in turn generate real value for Community our shareholders. Accordingly, we conduct a • Investment Principles Policy Contributions Total 18 22 0 rigorous review of ESG issues and risks during (Environmental, Social and Governance) our due diligence process when evaluating all – sets out our commitment to responsible Good Governance and Female Male N/A** royalty and stream opportunities. As each investing and further describes our Shareholder Alignment Senior Executive Management (5 - CEO, CFO, CLO, SVPs) 0 5 0 opportunity varies considerably based upon the approaches to integrating ESG factors commodity-type, jurisdiction, nature of the in our acquisition and asset Other Executive Management (10 - President (FNB), VPs) 2 8 0 royalty or stream interest (e.g. whether such management processes; Diversity, Inclusion Non-Executive Management (5 - Directors, Controller) 1 4 0 interest relates to a historical third-party • Responsible Gold Mining Principles Policy and Well-Being arrangement or is being newly created), among - sets out our RGMP-related commitments All Other Employees (20) 15 5 0 other things, we apply a flexible approach to our in respect of our acquisitions and other Climate Action Total 18 22 0 ESG due diligence review and frequently rely on aspects of our business; local ESG consultants for their expert guidance. • Climate Action Policy – sets out our Transparency and * BIPOC = Black, Indigenous, and People of Colour Please refer to page 6 of this ESG Report, climate-related commitments with respect Guiding Principles ** N/A = not available or not disclosed which describes our due diligence process, to our investment decisions and further including specific ESG factors assessed, when describes our approaches to integrating Incorporation of ESG Factors relating to assets under management in making investment decisions. climate-related factors in our acquisition About this ESG Report in Investment Management respect of securities portfolios supervised and asset management processes; & Advisory or managed by investment advisors is not Mitigating ESG Risks • Compensation and ESG Committee Appendices applicable to our company and such information in Contractual Arrangements Charter – specifies such committee’s FN-AC-410a.1 is not included in our disclosure. In order to mitigate ESG risks, when negotiating oversight over our company’s approach A: ESG Performance Table Amount of assets under management, by all new acquisitions we endeavour to include to ESG issues, the adequacy of our ESG B: Operators’ Emissions asset class, that employ (1) integration of Please refer to our responses to the following provisions to afford our company with access practices and policies, the adoption of environmental, social, and governance (ESG) SASB accounting metric (FN-AC-410a.2) for to ongoing reporting in respect of a project, any ESG-related standards or initiatives, C: TCFD Disclosure issues, (2) sustainability themed investing, our approach to incorporating ESG factors audit and inspection rights, and security and adopts ESG-related corporate goals used D: SASB Disclosure and (3) screening in our investment processes and strategies, remedies. Additionally, we include operating to evaluate management’s performance E: GRI Index which are conducted in all of our new royalty covenants (e.g. requirement of operators for executive compensation decisions As a royalty and stream company, we do not and stream acquisitions. to conduct operations in accordance with and the engagement with stakeholders F: Sustainable exercise control over or have direct influence responsible practices and applicable law) in respect of ESG issues; and Development Goals on the projects over which we have an FN-AC-410a.2 and transfer restrictions intended to ensure • Audit and Risk Committee Charter – G: KPMG: Independent interest. We do not have any “assets under Description of approach to incorporation that we remain partnered with a responsible specifies such committee’s oversight Limited Assurance Report management”, as defined by SASB, and we of environmental, social, and governance actors when it comes to ESG-related issues. over risk management, including ESG and do not provide supervisory or management (ESG) factors in investment and/or wealth Refer to page 7 of this ESG Report, climate change risks, the review of our H: Carbon Neutral Initiative services in respect of any of our acquisitions. management processes and strategies which describes in further detail these principal risks and exposures, and the Consequently, this quantitative SASB standard contractual protections. effective management, monitoring and