The Annual Report 2009 provides a brief overview of ICIMOD’s activities in the second year of its medium-term action plan, and at a time when the world’s attention was drawn to the challenges of climate change. The impact pathway approach is gradually being introduced to support analyses of the impact of ICIMOD’s activities. Comments from partners and selected examples are used to illustrate activities and outcomes in the different focus areas: water, ecosystem services, and sustainable livelihoods.