Overview Governance Strategy Risk Management Metrics and Targets Appendices 26 Transition risk summary Both the Net Zero 2050 and the Delayed Transition climate scenarios assume dramatic regulatory changes to reduce GHG emissions; these would result in a significant increase in the shadow price for emitted carbon, a proxy that encompasses government policy intensity and changes in technology and consumer preferences (see page 41 for a more detailed description of shadow carbon price). The Delayed Transition climate scenario does not see regulatory changes until 2030, while the Net Zero 2050 climate scenario sees immediate regulatory changes driving an increase in the shadow carbon price estimated and used by NGFS. To estimate potential transition risk impacts, an estimate of the carbon emissions associated with each of our properties is required along with an estimate of the shadow carbon price. Our transition risk assessment was based on the following: • The intensity of GHG emissions (tCO 2 e/unit of production) for each operation was obtained from Skarn Associates databases of energy and GHG emissions for the year 2025, the furthest forecast year available. • To assess the potential transition risks in the medium term (three to ten years), we chose 2030 with shadow carbon pricing driven by the Net Zero 2050 climate scenario. • To assess potential transition risk impacts in the long- term time horizon (i.e., 10+ years), we chose 2035 as our measurement point for assessing impacts and again used the shadow carbon pricing estimates from the Net Zero 2050 climate scenario, as they were more aggressive than the shadow carbon pricing estimates from the Delayed Transition climate scenario for the measurement period chosen. • Carbon pricing in 2023 was subtracted from the shadow carbon price estimates for Canada, as such costing should already be part of an operation’s cost structure. • By multiplying the emission intensity by the shadow carbon price, a cost impact per unit of production (US$/GEO or US$/lb copper) is estimated and we assumed a gold price of US$1850/oz and a copper price of US$4.00/lb to present estimated cost impacts in terms of a percentage of the metal prices. Our approach does not take into account how metal prices might move in response to the application of carbon pricing or which operations may be successful at decarbonizing. The transition climate-related stressors and associated risks defined through our climate scenario analysis process for the 11 jurisdictions evaluated are summarized in the table on page 27 . Several important operations for us are forecast to come to the end of their currently defined mine lives in the mid- 2030s, so the impact for shorter-lived assets tends to be mitigated given the shorter lives. We note, however, that successful exploration has the potential to extend the production lives of all properties reviewed. Although our transition risk analysis has focused on the impact of applying carbon pricing to our 11 operations being evaluated, transition risk can also manifest themselves in the following ways: social unrest, which could be driven by general cost of living increases, increased unemployment or the availability of services such as power and water. Increasing costs relative to any increase in commodity prices could reduce mineral reserve and resources at mines that have a higher cost structure or heavy emissions footprint and/or provide a disincentive for further exploration to extend mine life. 2023 CLIMATE REPORT ROYAL GOLD