128 Royal Gold, Inc. 2022 Environmental, Social and Governance Report About Royal Gold Governance ESG Stewardship Our People Our Operators and Communities Appendices Climate-related opportunities Through our climate scenario analysis, we identified a number of opportunities relating to climate change. All identified opportunities could be beneficial, regardless of the scenario considered; however, an assessment was made to identify the scenarios with the most beneficial opportunities and in which of our three time periods these opportunities exist. An assessment was also made while taking into consideration the positive attributes of each opportunity; these are detailed in the following chart. Financial: It is likely that the project generates a financial rate of return. Reputation: The execution of the project will likely be viewed positively by the market and our shareholders. Scope 3 (Operator’s Scope 1 and 2) Footprint Reduction: The project could directly or indirectly reduce the Scope 1 and Scope 2 emissions of our Operators that are attributable to our own emissions data. Opportunities are presented at a conceptual level, and detailed analysis could change our view of the potential benefits and impacts. Potential impacts Opportunity windows Opportunity Financial Reputational Scope 3 (financed) footprint reduction Short term (1–3 years) Medium term (5–10 years) Long term (>10 years) Low-carbon technologies are expected to become increasingly viable and advantageous from a cost perspective. The opportunity may exist to finance technology solutions. X X X Net Zero 2050 Net Zero 2050 Delayed Transition Obtain and apply high-quality carbon offsets against Scope 3 “financed” emissions ? X X Net Zero 2050 Net Zero 2050 Net Zero 2050 Delayed Transition Financially support renewable energy projects to directly benefit an operation in our portfolio Financially support Khoemac a u Copper in their plan to develop a 50MW solar farm X X X All scenarios Financially support renewable energy projects that are current in the planning stage with our Operators X X X All scenarios All scenarios Influence Operators Encourage our Operators who have not completed a climate risk assessment to advance on this subject X All scenarios Include in new stream agreements a requirement to disclose climate-related risk with reference to the TCFD X All scenarios Include in new stream agreements (where commercially practical) the provision of a financial incentive mechanism for reducing GHG emissions against a baseline X X X All scenarios All scenarios ? Reflects uncertainty of applicability of potential impact