 Humanity faces profound challenges. But we can shape our future before it defines us. Our picture of the world is shifting. In 2012, unprecedented growth in developing countries continued, bringing substantial gains for human well-being. At the same time, the West was still preoccupied with the ongoing economic crisis. At SEI we see the new picture as an opportunity. The field is open to make new connections across borders, across issues and across levels of governance. The task is to find new ways to meet the aspirations of all the world's people in a sustainable way, based on science, innovation and development. Over the past year SEI has been working to make these connections. In California, Afghanistan and Peru, our modeling software helped water planners to meet demand and deal with unpredictable conditions. We've shown how efforts to tackle climate change in the rich world by reducing material consumption can hit poorer countries that rely on international trade. Our research points the way to solving this dilemma by shifting trade policy and through the transfer of clean technologies. Our pioneering work on air pollution links climate change, human development and food security and connects local issues like household cooking with global governance. Last year the UN's Climate and Clean Air Coalition was set up to take action on black carbon and other pollutants. SEI was the first non-governmental organization to join the coalition. Of course, collective action through existing arrangements is still vital. With new collaborations and new connections around the world are making a real impact. At the urban scale, we worked with the C40 Cities Climate Leadership Group and Network of the Worlds Megacities to figure out the potential for cutting greenhouse gas emissions in coming decades. This network is finding creative ways to set the climate agenda. For more than 20 years SEI has provided knowledge and solutions for managing change. 2012 was no different and as a more dynamic world emerges we will seek new ways to help shape a future that can offer sustainability and prosperity for all. Welcome to our first interactive annual report. We hope you have fun learning about SEI's work and how together with our partners we have made a difference in 2012.