1 Despite elevated investment activity in 2025, air - travel - related CO 2 e emissions declined by 18% year over year, driven by an 11% reduction in flights and a 9% reduction in miles flown. Emissions intensity also improved, with average emissions per trip declining from 0.46 tCO 2 e in 2024 to 0.42 tCO 2 e in 2025, alongside a reduction in high - intensity flights from 22 to 17, reflecting more efficient routing and travel choices. Emissions factors vary by aircraft type, routing and seat configuration, with premium - class travel typically associated with higher emissions intensity. Emission Reduction Targets, Initiatives and Progress to Date In 2024, we adopted emissions - reduction targets for our corporate operations, including a 42% reduction in Scope 1 and 2 emissions by 2030, and a 30% reduction in overall Corporate Emissions (Scope 1, 2 and 3, excluding Financed Emissions) by 2030, each relative to a 2023 base year. We selected 2023 as the base year as it reflects a period during which our Corporate Emissions had largely stabilized following changes in workplace utilization patterns. As discussed elsewhere in this Sustainability Report, we have implemented and continue to advance a range of measures intended to reduce our corporate emissions and support achievement of these targets. A summary of our progress is provided below. Scope 1 and 2 Emissions In 2025, we achieved a 4.45% year - over - year reduction in Scope 1 and Scope 2 emissions (12.68% reduction compared to 2023 base year). The year-over-year decrease was driven primarily by energy - related initiatives, including approximately five months of operation of the solar panel installation at our Barbados office, which reduced reliance on grid - supplied electricity at that location. These reductions were partially offset by slightly higher year - over - year emissions associated with purchased steam used for heating our Toronto head office, reflecting building - level factors such as weather variability and changes in overall occupancy or operating conditions, which are generally the primary drivers of year - over - year variance and are not tracked on a tenant - specific basis. Scope 3 Emissions In 2025, total Scope 3 emissions increased relative to prior years, driven by a combination of temporary and non - recurring factors and varying trends by category. Employee commuting emissions rose year over year due to increased in - office attendance and longer commuting distances, partially offset by continued growth in lower - emissions commuting options, including a proportional increase of approximately 6% in hybrid and electric vehicle use compared with 2024. IT - related emissions also increased, primarily as a result of the implementation of a new enterprise - wide information technology platform, which required incremental software subscriptions and third - party implementation services recorded under Scope 3, Category 1 (Purchased Goods and Services). These technology - related emissions are largely one - time in nature and are not expected to recur at similar levels. In addition, the purchase and installation of a solar panel system at our Barbados office resulted in a one - time increase in Scope 3, Category 2 (Capital Goods) emissions. By contrast, business travel emissions decreased by 7.6% year over year, although they remained approximately 73.5% above the 2023 base year due to heightened investment and due - diligence activity. Average emissions per trip declined compared to 2024, indicating improved travel efficiency. 1 Beginning in 2025, our workforce has increasingly used AI - enabled software and digital services, which rely on energy - intensive data and cloud computing infrastructure. While we recognize the potential implications for our carbon footprint, these tools have supported operational efficiency, decision - making, and productivity across the business, and we expect them to continue to deliver value going forward. Emissions associated with software subscriptions and digital services, including AI - enabled applications, are currently accounted for within Scope 3, Category 1 (Purchased Goods and Services) using generally accepted, spend - based emissions factors for IT and data - processing services. At this time, key software vendors do not provide customer - level, usage - based GHG emissions data specific to AI - enabled features within bundled SaaS offerings. We continue to monitor developments in supplier disclosures and broader industry practices related to emissions associated with digital services and AI - enabled software and will evaluate whether enhancements to our emissions accounting approach or related disclosures are appropriate in future reporting periods as data quality, consistency, and comparability improve. Total Corporate Emissions Overall, Franco - Nevada’s total Corporate Emissions (Scope 1, Scope 2 and Scope 3, excluding Financed Emissions) increased by 14.63% compared to the prior year (57.74% relative to the 2023 base year). This change was driven primarily by non - recurring and transitional factors within Scope 3 emissions, alongside selected activity - based changes during the reporting year. The most significant contributor was the recognition of one - time Scope 3, Category 2 (Capital Goods) emissions associated with the purchase and installation of the solar panel system at our Barbados office. While these up - front embodied emissions increased reported emissions in the current year, the system has already delivered a material reduction in Scope 2 emissions from purchased electricity at that location, with further reductions expected as on - site renewable generation continues to displace grid - supplied electricity in future periods. Total Scope 3 emissions were also influenced by higher emissions within Purchased Goods and Services, primarily reflecting elevated software - and IT - related expenditures associated with the implementation of our new enterprise - wide information technology platform, as well as higher employee - commuting emissions during periods of increased in - office attendance. These increases were partially offset by lower business - travel - related emissions, reflecting fewer flights and reduced total miles flown during the year. Taken together, the year - over - year increase in total Corporate Emissions reflects non - recurring and implementation - driven factors, rather than a deterioration in underlying emissions intensity or the effectiveness of the company’s emissions - reduction initiatives. Excluding these non - recurring Scope 3 items, Franco - Nevada would otherwise have recorded a year - over - year decrease in total Corporate Emissions, driven primarily by lower Scope 2 electricity emissions and reduced business - travel - related emissions. Capital goods expenditures and the level of software - and IT - related activity reflected in the reporting year are not typical of Franco - Nevada’s business model and are not expected to represent recurring or material sources of Scope 3 emissions in future periods. Carbon Neutral for Corporate Operations We are committed to reducing our Corporate Emissions footprint and, since 2020, have maintained carbon - neutral corporate operations, which we intend to continue on an annual basis. We pursue this objective through ongoing emissions reduction efforts and the use of carbon offsets to address residual emissions that cannot yet be eliminated. For 2025, we offset our global Corporate Emissions through the purchase of carbon offsets from Bullfrog Power, comprising an equal combination of emissions reduction credits sourced from a Climate Action Reserve - registered composting project in the United States and a Gold Standard - certified efficient safe drinking water project in Ethiopia. Additional information regarding our approach to carbon neutrality is provided in Appendix G . Franco-Nevada Corporation 42