114 Royal Gold, Inc. 2022 Environmental, Social and Governance Report About Royal Gold Governance ESG Stewardship Our People Our Operators and Communities Appendices Financial impacts The financial impacts of climate-related issues on an organization are driven by the specific climate- related risks and opportunities to which the organization is exposed and its strategic and risk management decisions on managing those risks (i.e., mitigate, transfer, accept or control), and seizing those opportunities. The TCFD identify four major categories through which climate-related risks and opportunities may affect an organization’s current and future financial positions: revenues, expenditures, assets and liabilities, and capital and financing. Expenditures (income statement): We are not the operator of the mining assets that make up our portfolio of mineral investments; therefore, we generally have no direct cost exposure to the operations. However, we may see an increase in our expenditures if we elect to or are required to purchase carbon offsets associated with our Scope 3 Investment Emissions. Revenue (income statement): Our revenue comes from the production of metals and mineral commodities at the operations where we hold stream and royalty interests. Climate risk may impact the Operators’ ability to produce as planned, thus impacting our revenue. Assets and liabilities (balance sheet): We carry the undepleted value of our stream and royalty interest on our balance sheet with the values supported by mineral reserves and resources defined and reported by the asset Operators, based on certain commodity prices, operating costs, capital costs and operational parameters. We also carry the book value associated with exploration value. Transitional and physical risks could negatively impact the parameters underpinning the mineral reserve and resources, and this could reduce these mineral reserves and resources, restrict the ability of our Operators to identify new resources or convert resources into reserves or prevent the identification of economic mineralization in our earlier-stage properties. The result could be an increase in depletion or a write-down of the asset value. Capital and financing (balance sheet): We rely on internally generated cash flow and the ability to raise capital through loans or the sale of equity to fund the growth of our business. If investors or financial institutions form a negative view regarding our management of climate-related risks, the cost to raise external capital could increase, reducing our competitive advantage in relation to our peers. CLIMATE - REL ATED R ISK S, OPPOR TUNITIES, AND FINANCIAL IMPAC T ROYAL GOLD Revenue Carbon Offset Expenditures Cost of Financing ROYAL GOLD Attributed Mineral Resources and Reserves OPERATORS OF OUR STREAM AND ROYALTY INTERESTS FINANCIAL IMPACT ON ROYAL Transition Risks Carbon Pricing Regulation Technology RISKS OPPORTUNITIES Opportunities Energy Efficiency Energy Source Electrification CASH FLOW STATEMENT BALANCE SHEET INCOME STATEMENT Physical Risks Acute Chronic