Message FNV: TSX | NYSE from our CEO Making Responsible Investments ESG Ratings ESG-Related Due Diligence Franco-Nevada We believe that proper consideration of ESG risks in connection with the companies, projects and jurisdictions in which we seek to invest will enhance the long-term performance of our company and in turn generate real value for our shareholders. With each royalty and stream opportunity we conduct a comprehensive assessment of ESG factors, which guide our investment decisions. In the past few years, we have refrained from allocating capital to royalty and stream opportunities due to unfavorable ESG-related issues revealed in our due diligence review process. Making Responsible In 2020, we further enhanced our internal due diligence processes including refining internal ESG due diligence checklists, which helps direct our ESG due diligence Investments review and inform our ESG due diligence informational requests made to the applicable operators. Guiding Principles Starting this year, we have subscribed to McKinsey’s MineSpans, a data platform that provides over 1,000 data points per mine, including carbon and other greenhouse gas emissions generated by projects, for over 3,800 mines across the globe. We are using this information to better inform our ESG review of potential investments. We will typically assess the following as part of our ESG-related due diligence: Operators • review of the climate-related impact of the project, including emission reduction • impacts of development and operations on fauna, flora and biodiversity targets and goals to achieve net-zero emissions • air emissions and dust from the project Approach to • review of the safety and human rights records of the project and operator • management by the operator of toxic materials Climate Change • review of any environmental incidents relating to the project • other environmental programs and initiatives put in place by operator including • impacts of mining, operations and related activities on surrounding communities biodiversity protection • tailings impoundments and waste rock storage at the project • energy sources and requirements and efficiency of operations • water requirements, water sourcing and responsible water management plans • the commitments by, and track record of, the operator to fundamental freedoms Contributions • ethical track record and any history of corruption of individuals (e.g. freedom of association) • the reputation of the operator, locally and internationally • whether any external certifications have been obtained by the operator or project • workplace standards, protections and policies • whether the operator has committed to the RGMPs or the principles of the • community initiatives and engagement and prior consultation with International Council on Mining & Metals (“ICMM”), Canadian Institute of Mining Employees indigenous peoples Metallurgy and Petroleum (“CIM”), Towards Sustainable Mining (“TSM”) or other • closure plans relevant standards • climate-related risks and opportunities specific to a project and plans adopted Governance by the operator to manage such risks We routinely engage third-party experts to assist in its evaluation of new investments, which include external legal About this counsel (including in the jurisdictions in which a project is located), technical consultants, environmental consultants, ESG Report corporate social responsibility consultants and governance consultants for the purpose of assessing political, environmental, social, legal, technical and regulatory issues in applicable jurisdictions and the operator’s Appendices management of the same. 10