Overview Governance Strategy Risk Management Metrics and Targets Appendices 22 2023 CLIMATE REPORT ROYAL GOLD COMPARING CLIMATE SCENARIOS Current policies Delayed transition Net Zero 2050 NGFS Warming Level 1 2030 1.5 1.5 1.5 2040 1.7 1.7 1.6 2050 1.9 1.7 1.5 2100 2.8 1.6 1.3 Physical risk medium-term 3–10 years Physical risks increasing Physical risks increasing Physical risks increasing Physical risk long-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 – 2023 policies Delayed until 2030 Immediate and smooth Technology change Slow Fast after 2030 Fast Carbon dioxide removal Low use Medium use after 2030 Medium-high use Policy variation Low High Medium use 1 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.