Royal Gold Inc: Racial Equity Reporting

WHEREAS: Equity-based policies and programs that promote diversity and inclusion strengthen workforce effectiveness and corporate performance. Numerous studies have demonstrated the financial benefits of a diverse, inclusive workplace, while others demonstrate the risk of failing to establish human capital management policies that support and retain a diverse workforce:

A McKinsey study found that companies with the strongest racial and ethnic diversity are 35% more likely to outperform their industry medians for earnings before interest and tax.[1]
According to CEO Action for Inclusion & Diversity, “organizations that lead with inclusion are eight times more likely to have better business outcomes.” [2]
According to a recent CNBC survey, 80% of workers prefer to work for a company that values DEI.[3]
A recent study by As You Sow of EEO-1 forms found a “positive association between diverse representation in management and positive financial performance.”[4]

Royal Gold is lagging behind peers on diversity and inclusion policies and practices, despite retaining a 2022 corporate policy on the subject.[5] Royal Gold earned a 3% score on As You Sow’s Racial Justice Scorecard, compared with Newmont’s 5%.[6] The Company’s low score reflects minimal transparency on workforce data and its failure to disclose related human capital management policies and practices.

Shareholders have a clear interest in understanding the Company’s internal diversity and inclusion policies, along with the quantitative data needed to evaluate their effectiveness. Without this visibility, investors cannot assess whether the Company is cultivating the diverse, high-performing workforce necessary for sustained value creation. The Company’s continued failure to disclose this information elevates risk, including the potential to undermine brand value, weaken talent retention, and impair long-term financial performance.

Royal Gold states that “diversity can enhance creativity, productivity and organizational strength,” yet provides no data demonstrating that its people policies are delivering results.”[7] Royal Gold identifies workforce stability, talent attraction, and retention as material risks, noting that it is “dedicated to creating a workplace that attracts top talent and provides a sense of purpose.”[8] However, the Company’s minimal public disclosure on diversity and inclusion undermines this internal commitment while the lack of transparency limits investors’ ability to assess how effectively the Company is building and retaining a diverse talent pipeline, which is an essential driver of innovation and long-term value creation. Strengthening disclosure would help mitigate these material human capital risks and better position the Company for sustainable growth.

BE IT RESOLVED: Shareholders request that Royal Gold issue a public report, at reasonable cost and omitting proprietary information, disclosing its diversity and inclusion policies and practices.

[1] https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/delivering-through-diversity

[2] https://www.ceoaction.com/purpose/

[3] https://www.cnbc.com/2021/04/30/diversity-equity-and-inclusion-are-important-to-workers-survey-shows.html

[4] https://www.asyousow.org/report-page/workplace-diversity-and-financial-performance

[5] https://s28.q4cdn.com/583965976/files/doc_downloads/ESG/2022/12/Diversity-and-Inclusion-Policy.pdf

[6] https://www.asyousow.org/reports/racial-justice-june2024

[7] https://royalgold.com/investment-stewardship/our-people/default.aspx

[8] https://www.royalgoldsustainability.com

Resolution Details

Company: Royal Gold Inc

Lead Filers: As You Sow

Year: 2026