Corporate Responsibility
Franco-Nevada is committed to operating as a good corporate citizen in all facets relating to the health and safety of its employees, the communities in which it has interests and the environment. Our policies for Environmental and Corporate Social Responsibility and Health & Safetycan be found on the Corporate Governance section.
Franco-Nevada currently does not operate any of the mineral or oil and gas properties in which it has royalty interests. However, Franco-Nevada recognizes its business model is dependent on the industry operating in a responsible fashion. We actively support the industry in these efforts and initiatives. Franco-Nevada is an active member on the World Gold Council ("WGC") board where it represents the associate members of the WGC. WGC members are committed to the principles of the International Council on Mining & Metals ("ICMM"). These principles seek continual improvement in sustainable development performance. Where possible and relevant, Franco-Nevada follows the same principles in the way it conducts its own business. Franco-Nevada is also an active member in the Northwest Mining Association ("NWMA") where we are represented by Steve Alfers who chairs the mining law committee. The NWMA is an important mineral trade association in North America promoting economic opportunity and environmentally responsible mining.
In 2009, over 90% of Franco-Nevada's mineral royalty revenues were from properties operated by members of the WGC or ICMM compared to over 85% in 2008. This improvement reflects FrancoNevada's investment policy to consider the legal, regulatory, environmental, health and safety and human rights aspects before making an investment. New investments made in 2009 in operations managed by Newmont, Goldcorp, Coeur d'Alene and BHP Billiton met this criteria. At the Palmarejo operation at which Franco-Nevada has an important interest, Coeur Mexicana has just been awarded, for the second year in a row, the prestigious Empresa Socialmente Responsable ("ESR") award. In 2009, our oil and gas revenues were from conventional producing royalty and working interests in Western Canada operated by established senior producers with proven track records. Franco-Nevada does not have any producing interests in oil sands. At both our important Weyburn and Midale units inSaskatchewan, there are active enhanced oil recovery programs underway that are world leading projects in carbon sequestration that serves to reduce greenhouse gases.
Franco-Nevada may from time to time engage in exploration efforts either as part of advancing a property or to conduct due diligence in advance of undertaking an investment. We undertake to be guided by the Principles and Guidance for a Framework of Responsible Exploration as set forth by the e3Plus program of the Prospectors and Developers Association of Canada ("PDAC").
Franco-Nevada's directors and management support philanthropic and charitable efforts generally using their own personal resources. Our philosophy is charity is a decision best made by shareholders with their own money rather than the Company's. We are working hard to increase dividends and the value of Franco-Nevada's shares so that shareholders can make their own charitable decisions.