113 Royal Gold, Inc. 2022 Environmental, Social and Governance Report About Royal Gold Governance ESG Stewardship Our People Our Operators and Communities Appendices SCENAR IO 3: NET ZERO 2050 NET ZERO 2050 – PR IMARY ENERGY MIX NET ZERO 2050 – GLOBAL C AR B ON PR ICING Net Zero 2050 is an ambitious scenario that limits global warming to 1.5°C through stringent climate policies and innovation, to reach net zero CO 2 emissions around 2050, consistent with the Paris Agreement. This scenario assumes that ambitious climate policies are introduced immediately. Carbon dioxide removal (“CDR”) is used to accelerate decarbonization at the minimum possible rate, broadly in line with sustainable levels of bioenergy production. Physical risks are relatively low and transition risks are high, but not as high as those in the Delayed Transition scenario. Carbon pricing shows an escalating profile starting immediately and increasing past 2050, with carbon pricing exceeding $600/tCO 2 e. As a primary energy source, coal will be reduced significantly by 2030 with a dramatic increase in renewable primary energy sources, wind and solar. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2030 2040 2050 2060 2070 2080 2090 2100 2020 $0 $200 $400 $600 $800 $1000 2020 2030 (US/$t CO 2 ) 2040 2050 2060 Source: NGFS Climate Scenario Database, (average of REMIND, GVAM 5.3, MESSAGE ix models) Oil Coal Gas Nuclear Biomass Wind Solar Hydro Comparing climate scenarios Current Policies Delayed Transition Net Zero 2050 NGFS Warming Level* 2035 1.6 1.6 1.5 2050 2.0 1.7 1.5 2100 3.2 1.6 1.3 Physical risk medium term 3–10 years Physical risks increasing Physical risks increasing Physical risks increasing Physical risk medium term 10+ years, 2035 High and increasing physical risks Physical risks start declining after 2040 Physical risks start declining after 2030 Transition risk medium term 3–10 years Low transition risks Low transition risks High transition risks Transition risk long term 10+ years, 2035 Low transition risks High transition risks High transition risks Policy ambition +3°C 1.6°C 1.5°C Policy reaction None (2020 policies) Delayed until 2030 Immediate and smooth Technology change Slow Fast after 2030 Fast Carbon dioxide removal Low use Medium use after 2030 Medium use Policy variation Low High Medium use * Warming Level: Each scenario will have the same physical parameters and impacts at the same warming level. For instance, at the warming level of 1.5, all three scenarios would share the same physical risks.