Franco-Nevada Corporation 53 Climate-Related Risks As we have a small workforce operating solely within office environments, we are not directly exposed to most climate-related risks that mining and energy operators face. Notwithstanding, the climate-related risks of the operators of the projects in which we hold royalty and stream interests can pass through to us. Climate-related incidents, trends or developments have the potential to adversely impact production at an operation and, by extension, royalty or stream payments or deliveries to our company. Additionally, risks related to changes in the market price of commodities that underlie our royalty and stream interests, which changes may be driven by climate-related events, trends or sentiments, can impact our revenues. As demonstrated in Resilience of our Portfolio in this Appendix, exposure to these risks is substantially mitigated for our company. Notably, of the four major categories of financial impact set out by the TCFD (Revenues, Expenditures, Assets and Liabilities, and Capital and Financing)*, the impacts of climate-related risks may affect our Revenues (Income Statement) and our Assets (Balance Sheet) but are unlikely to increase our Expenditures (Income Statement) or Liabilities (Balance Sheet) and are unlikely to materially adversely impact our access to Capital and Financing (Balance Sheet). The following discussion describes our operating partners’ climate-related risks, the potential financial impact for our operating partners and their corresponding financial impact to our company. Given the breadth and diversity of our royalty and stream portfolio and due to the fact that most of our royalty and stream interests are perpetual or have long durations, we have exposure to each of the risks below over short, medium and long-term horizons and such risks are identified and are part of our climate- related strategy and decision making, as appropriate. Certain acute physical risks will typically involve a short-term impact (less than 1 year), chronic physical risks, regulatory and legal risks, market risks and reputational risks can lead to medium-term (1 to 5 years) and long-term (5 years+) impacts**. In particular, we have provided assessments, which are summarized in the tables on the following pages, of: § Physical climate risks specific to certain jurisdictions where we have a high concentration of assets and/or material assets. In conducting its geographic physical risk assessment for Ontario, Nevada, Panamá, Chile and Peru, Critical Resource applied SSP1-2.6 (low emissions scenario) and SSP5-8.5 (high emissions scenario) for 2030 and 2050 and relied on publicly available information and projections, including the World Bank’s Climate Change Knowledge Portal. The assessment is high level in nature (e.g. physical risks applying generally across the country or applicable jurisdiction and not necessarily relating to any of Franco-Nevada’s particular assets) and does not address any additional risks or mitigating factors (e.g. topographical, sunk capital costs to build a mine, relative contribution of mine to a country’s GDP, etc.) specific to Franco-Nevada’s assets in these jurisdictions. § Socio-political, regulatory and legal risks, market risks and reputational risks that might impact key commodities in our commodity mix (gold, silver, PGMs, iron ore, energy (oil, gas, NGL) and nickel) in the transition to a low-carbon economy. Climate Strategy | The actual and potential impacts of climate-related risks and opportunities on our business, strategy, and financial planning * “Implementing the Recommendations of the Task Force on Climate-related Financial Disclosures”, Task Force on Climate-related Financial Disclosures (June 2017). ** Similar to the TCFD Framework, IFRS S2 requires a discussion of the current and anticipated financial effects of climate-related risks and opportunities on our financial position, financial performance and cash flows over the short, medium and long term, including noting any potential material adjustments and planned sources of funding. 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