This report details the first two years of activity of the Microsoft-CNRS OSD Chair at Ecole Polytechnique. The main objective for this first period was to identify promising research themes where optimization techniques were applied to real-world applications in sustainable development; two promising application fields were identified: transportation and energy. Another important goal, that of making the Chair known to the scientific community, was fulfilled by ranking first (over more than fifty participating research teams from all around the world) in the prestigious “EURO/ROADEF Challenge 2010” sponsored by Electricit´e de France.