Franco - Nevada does not operate mines, develop projects or conduct exploration activities. Our business model is focused on acquiring, managing and holding royalty and stream interests, many of which are perpetual or long - life assets intended to be held over extended time horizons. Since our initial public offering in 2007, Franco - Nevada has not undertaken any material divestments from its portfolio. As a result, the identification and assessment of sustainability - and climate - related risks is particularly critical at the outset, prior to acquiring new royalty and stream interests. Franco - Nevada has adopted a comprehensive due diligence process for evaluating prospective investments and operating partners. This process draws on the experience of our multi - disciplinary management team and Board of Directors to assess sustainability - and climate - related risks specific to the underlying operation, jurisdiction and commodity, as well as the operator’s plans, controls and capacity to manage those risks. Since early 2022, the company has subscribed to MineSpans, a data platform that provides extensive mine - level cost, supply and operational metrics across a global dataset. This tool supports a more systematic and consistent review of climate - and sustainability - related data as part of our investment evaluation process. The company also uses climate - related scenario analysis, as described earlier in this Appendix, to support the identification and prioritization of material climate - related physical and transition risks and opportunities. The scenario analysis informs our assessment of how such risks and opportunities may evolve over short - , medium - and long - term horizons and supports evaluation of the resilience of Franco - Nevada’s business model and portfolio under different climate pathways, taking into account our non - operating role and reliance on third - party operators. Franco - Nevada also engages external technical and subject - matter experts, as appropriate, to evaluate specific risks, including climate - related physical, regulatory, market and reputational risks, which vary significantly by project, jurisdiction and operator. Additional detail on our due diligence process is provided on page 5 of this Sustainability Report. Where sustainability - or climate - related risks identified through due diligence are assessed as materially adverse to an operator, a project or Franco - Nevada’s royalty or stream interest, the company may elect not to proceed with an opportunity, and has done so on a number of occasions. Where an opportunity proceeds, Franco - Nevada seeks to incorporate contractual protections, including reporting obligations, audit and inspection rights, operating covenants, transfer restrictions and remedies, intended to help monitor and manage sustainability - and climate - related risks over the life of the investment. Further discussion of these contractual protections is included on page 7 of this Sustainability Report. Following acquisition, sustainability - and climate - related risks are monitored through ongoing engagement with operating partners, supported by contractual reporting provisions and audit and inspection rights, and by monitoring operator performance, including emissions profiles and climate - related commitments, plans and initiatives for certain producing assets. If a sustainability - or climate - related event occurs, Franco - Nevada engages with the operator and may offer assistance, as appropriate. The company also engages regularly with its stakeholders to provide transparency on sustainability - and climate - related risks impacting its portfolio and to respond to material concerns, which supports the identification and management of reputational risk. As described in the Governance section of this Appendix, the Board and its Committees meet regularly with senior management to review sustainability - and climate - related risks and exposures in the context of strategy and capital allocation. Where sustainability - or climate - related issues arise at an existing asset, management and the Board apply a “look - back” review to assess whether such issues were, or should reasonably have been, identified during due diligence. This process is intended to continuously strengthen Franco - Nevada’s risk identification, assessment and management practices. Risk Management | Retrospective look back to strengthen risk identification and assessment processes Risk Management Pass on Opportunity OR Provide for Contractual Protections Due diligence process leveraging experience of: • Board of Directors • Management • External consultants How did we do? What will we do? Collaboration between management, the Board and its Committees to define sustainability- and climate-related strategy Risk identification and assessment through: • Monitoring assets and operators • Engagement with operators • Stakeholder engagement Capital Allocation Risk Identification, Assessment & Management Integration into Overall Risk Management Asset Management Our processes used to identify, assess, and manage sustainability- and climate-related risks Franco-Nevada Corporation 68