Royal Gold, Inc. 2021 ESG Report 14 guidelines, but that are adapted to fit our business model. Our approach is: if we weave ESG into our business activities and provide proper reporting of our progress to our shareholders, this represents the best way to employ and disclose our commitment to ESG. What are your key investment principles? Royal Gold’s principles are organized under four ESG pillars: Governance and Culture: The manner in which we manage the company will reflect ESG in our approach to every aspect of the business. This includes the environment in which our employees work and our commitment to our anti-corruption, diversity, whistleblowing and human rights policies. We will employ highly qualified employees and maintain a Board of Directors with diverse and relevant backgrounds to properly oversee our efforts. We will require accountability at all levels of the Company and measure Company and individual performance against specific and pre-determined standards. Investment Strategy: This is at the heart of our principles because it is the initial investment where we make the key decision on our selection of Operators and where we can make the most impact on an operation through the terms of our investment. Later in this report you will find a detailed description of our Due Diligence process, which includes a significant ESG component. Once we understand the context of an opportunity, we can then use the negotiation process to incentivize Operator behavior by offering improved economics based on the achievement of specific ESG goals. We are continuing to evolve our thinking on how we can play a meaningful role in this aspect of our Operator’s business. Stewardship: Our initial investment is not the end of our ESG journey with an Operator. We can and will require covenants, including reporting covenants, that allow us to track ESG performance, and our regular dialogue with Operator management allows for us to ask questions and provide feedback. One of the benefits of having a broad portfolio is we get to see numerous solutions to a variety of ESG issues, and we can suggest an approach that we have seen work elsewhere or put Operators with whom we have interests together to communicate with each other and to discuss solutions. Transparency: We endeavor to disclose, when available, various ESG metrics related to both our stream and royalty interests, including Operator greenhouse gas emissions and energy and water efficiency, as well as those greenhouse gas emissions that pertain to our corporate offices and operations. This report reflects our first disclosure under TCFD (Task Force on Climate- Related Financial Disclosures), and we expect to continue to develop this reporting over time. We will also provide a scenario analysis on the potential impact of climate change on our Principal Properties. In many cases the most fulsome data set and full scenario analysis may be best reported by an Operator, but we will endeavor to give investors a straightforward assessment of the risk of our portfolio with respect to climactic events. Can “Net Zero” be put into the context of your actual business model? Royal Gold was able to fully offset fiscal years 2020 and 2021 carbon emissions associated with our corporate operating environment, including emissions from our office energy use and employee commuting and business travel through the purchase of verified carbon credits. However, given the nature of the business, that achievement is not the high bar that we wish to attain. The more important aspect is how do we play a role in our Operators’ efforts to address GHG emissions from their operations? If we can play a role in assisting Operators to achieve their climate targets, the performance of our collective stream and royalty interests should benefit as well.