Corporate Responsibility

Franco-Nevada does not operate any of the mineral or oil & gas properties from which it currently receives royalties. However, Franco-Nevada's business model is dependent on our operators operating in a responsible fashion. We actively support the industry in these efforts and its initiatives. Franco-Nevada is an active member in the World Gold Council ("WGC") where we are represented by Pierre Lassonde. 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. In 2008, approximately 85% of our gold royalty revenues were from members of the WGC or ICMM. This proportion will likely increase as both our recent major new royalty investments were with operators that were members of the WGC.  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 the oil & gas sector, the vast majority of our producing royalty and working interests are from conventional production in Western Canada operated by established senior producers with proven track records. We do not have any producing interests in oil sands. EnCana, the operator of our interests in the Weyburn unit in Saskatchewan, has been injecting carbon dioxide into the oil reservoir as part of an enhanced oil recovery program since 2000. This not only aids in oil recovery and production but also serves to reduce greenhouse gases. Apache, the operator of our interests at the Midale unit also in Saskatchewan, started a similar carbon sequestration program in 2005. 

Our 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 the value of Franco-Nevada's shares and pay dividends so that shareholders can make their own charitable decisions.