To our stakeholders:

I am pleased to confirm that Pax World Management LLC reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

Sincerely yours,

Joseph F. Keefe
President and CEO

Pax World Management LLC believes that the empowerment of women is a fundamental building block of economic progress. This comports with Principle 6: the elimination of discrimination in respect of employment and occupation.

Pax manages the Global Women's Equality Fund, which seeks to invest in companies that are leaders in women's empowerment, to shareholders, and conducts advocacy with the companies in the Global Women's Equality Fund urging them to improve their policies, programs and performance with respect to gender equality. For example, Pax wrote to every company in the portfolio in 2010 urging them to endorse the UN Women's Empowerment Principles, and since then, three of the companies we wrote to have provided that endorsement.
In addition, however, we believe that our own actions should be an example to other companies, including the companies in which we invest. To help set that example, Pax World recently conducted a Pay Equity Analysis within our own firm. There are many indicators of women's empowerment, and equal pay and benefits is a key indicator. The pay equity analysis (shown below) showed that in most categories, the average salary and bonus of women exceeded that of men. We will continue to gather and monitor these statistics, and address inequities when we find them. We also note that fully half of the senior vice presidents who are members of Pax World's Management Committee are women, as are half of our portfolio managers (6 people in total).

The statistics on gender pay equity at Pax World Management LLC show that in most categories, the average salary plus bonus of women exceeds that of men. In many cases this reflects differences in experience and qualifications. Within each category, however, we will continue to monitor the compensation of each person, and identify places where additional steps must be taken to assure that compensation is based on qualifications, experience, job description and performance, and is not discriminatory with respect to gender.

Pax World Management LLC
Gender Pay Equity Analysis
As of December 31, 2010

Salary Ratio
Job Function Women to Men
Directors 0%
Portfolio Managers 133%
Senior Vice Presidents 73%
Senior Managers 130%
Senior Analysts 119%
Analysts 136%
Professional Staff 97%
General Staff 138%

Pax World Management LLC views a company’s handling of the potential impact of its operations on the environment as an indicator of its overall financial and management strength. Environmental policies and programs that aim to lighten a company’s environmental footprint can potentially reduce its regulatory, reputational and litigation risks. In addition, companies’ efforts in this area can contribute to positive relations with stakeholders, including employees, communities and customers. Pax World promotes development and diffusion of environmentally friendly technologies (Principle 9) through our products by offering the Pax World Global Green Fund, whose investment objective is to seek long term growth of capital by investing in companies whose businesses and technologies focus on mitigating the environmental impacts of commerce. Moreover, any company in which Pax invests, in any of our funds, must meet our criteria for environmental performance, as well as other indicators of sustainability.

We also seek to minimize our own environmental footprint through a variety of initiatives.

During the past two years we have taken several steps to minimize and monitor our energy use (and through that, our greenhouse gas emissions), and to procure green products wherever it was feasible.

The following is a list of things we have done to minimize and manage our environmental footprint.

1. Put our thermostats on automatic settings (higher in summer, lower in winter) in February 2010.
2. Installed motion sensors on lighting in common spaces that are used infrequently to assure that the lights are turned off when no one is in the room (March 2010)
3. Changed automatic settings on all office computers to turn off the monitor at night, and changed automatic settings to power down all office printers at night.
4. Changed computer settings to put all monitors in standby mode after 11 minutes of inactivity.
5. Since 2007, one-fourth of all the new computers purchased at Pax are certified Energy Star, and we are working with our product provider to assure that a larger percentage of the computers we purchase are energy-saving. We obtained a certification as a partner in EPA's Low Carbon IT/Energy Star program in spring of 2009. This consists of participating in Dell's carbon footprint offset program for each new computer purchased, centralizing monitor and PC power use to the specification of the EPA's EZGPO tool to set sleep, hibernate and stanby settings. In 2010, we calculated (and EPA certified) that this had saved nearly 21,000 kWh of energy.
6. We arranged to offset Pax World's emissions of greenhouse gases from office electricity use and travel through Native Energy. In 2010 the offset totaled 262 tons of carbon, and in 2009 we offset 293 tons of carbon. In both years, the offset consisted of investment in the Greensburg Wind Farm.
7. We instituted a policy to purchase 100% recycled paper products for office use, and to use recycled paper for our printed products for shareholders wherever feasible, and to monitor our paper purchases for environmental friendliness.

Pax World's electricity use in 2010 was below that of 2008, when we began to institute our energy management programs. Energy use was higher in 2010 than in 2009, however, in large part due to the fact that the summer of 2010 was unusually warm; according to the National Oceanographic and Atmospheric Administration, 2010 in total was the warmest year on record for New Hampshire (see http://www.ncdc.noaa.gov/sotc/service/national/Statewidetrank/201001-201012.gif).