Franco-Nevada Corporation 54 Potential Financial Impact for: Description Our Operating Partners Our Company SUMMARY Acute: Extreme weather events caused by global warming (e.g. droughts, floods, hurricanes, etc.) These events may lead to production delays and cessation of operations • Short-term delay (deferral) of Revenues Chronic: Gradual shifts in weather conditions (e.g. water scarcity, shifts in rainfall patterns, rising sea levels, etc.) These shifts may lead to recurring production delays and cessations of operations and increased operating costs to adapt to climate changes, which may lead to projects being abandoned or placed on care and maintenance if adaptation costs erode anticipated profitability • Longer-term and potentially recurring delays (deferrals) of Revenues • Potential impact to valuation of Assets on balance sheet (e.g. impairment or write-off of assets) BY JURISDICTION CHILE • Reduction in annual precipitation rates is likely to exacerbate Chile’s pre-existing issues of water stress as well as the frequency and length of droughts • Despite an overall trend towards decreasing precipitation, extreme rainfall events are expected to intensify • Chile is projected to experience lower rates of warming than the global average, yet rising temperatures still pose risks Main risks: Health and safety of employees; social license to operate as increasing temperatures and decreasing rainfalls leads to loss of biodiversity; inability to permit new mines or mine life extensions using ground water Financial impacts to operations: Reduction in revenue due to production delays; increased operational costs (i.e. repairs to operations, energy costs) Revenue could be impacted in the short, medium or long-term due to interruptions to production caused by physical climate hazards Risk of stranded Assets: Low-medium NEVADA • Nevada is at high risk of extreme heat, with the increased severity and frequency of heat waves posing a significant risk to people and projects • There is a high likelihood that rising temperatures will increase the severity and intensity of droughts • The risk of wildfires will increase, while flooding and storms may also become more common Main risks: Health and safety of employees; social license to operate given water scarcity issues caused by extreme heat in some areas Financial impacts to operations: Reduction in revenue due to production delays; increased operational costs (i.e. repairs to operations, energy costs) Revenue could be impacted in the short, medium or long-term due to interruptions to production caused by physical climate hazards Risk of stranded Assets: Low Potential Financial Impact for: Description Our Operating Partners Our Company PERU • Temperatures are projected to rise in Peru, creating an increased risk of extreme heat, while increased rainfall also raises the risk of flooding, landslides and storms • The impact of climate change on precipitation rates is expected to vary considerably across Peru • Glacial retreat is occurring at an accelerated rate in Peru, increasing the risk of floods and landslides • Climate change could exacerbate existing water stress, creating challenges for mining operations Main risks: Health and safety of employees; social license to operate given water scarcity issues caused by extreme heat and droughts Financial impacts to operations: Reduction in revenue due to production delays; increased operational costs (i.e. repairs to operations, energy costs) Revenue could be impacted in the short, medium or long-term due to interruptions to production caused by physical climate hazards Risk of stranded Assets: Low PANAMÁ • Panamá’s vulnerability to tropical storms and droughts is expected to increase as climate change impacts the El Niño/La Niña phenomenon • Episodes of extreme heat and the occurrence of wildfires are projected to rise • Flooding and landslides could pose a significant risk, but the impact of climate change on these hazards is uncertain Main risks: Health and safety of employees, damage to infrastructure; supply chain disruptions Financial impacts to operations: Reduction in revenue due to production delays; increased operational costs (i.e. repairs to operations, energy costs) Should operations resume, revenue could be impacted in the short, medium or long-term due to interruptions to production caused by physical climate hazards Risk of stranded Assets: Medium NORTHERN ONTARIO • Wildfires, water stress and drought are projected to increase • Rising temperatures in Ontario will reduce the risk of extreme cold • Changes to precipitation levels are expected, but the possible impacts on mining operations appear limited Main risks: Health and safety of employees; damage to infrastructure; supply chain disruptions Financial impacts to operations: Reduction in revenue due to production delays; increased operational costs (i.e. repairs to operations, energy costs) Revenue could be impacted in the short, medium or long-term due to interruptions to production caused by physical climate hazards Risk of stranded Assets: Low Physical Risks 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 Sustainability Report Appendices Appendices A: ESG Performance Table B: ISSB Sustainability Disclosure Standards C: SASB Disclosure D: GRI Index E: Sustainable Development Goals F: KPMG: Independent Limited Assurance Report G: Carbon Neutral Initiative