The primary objective of this document is to provide a comprehensive overview of the progress made during the second year of the SMARTNESS ERC. Following the structure and research strand organization of the first scientific report, this document emphasizes the scientific aspects, highlighting key achievements and areas for improvement. Technical details of the reported activities can be found in the scientific publications listed in this document and referenced throughout the description of work. This document is the public version of Yearly Scientific Report #02 (RC2), submitted in April 2025 and approved by FAPESP. It contains the same content as the full report, excluding three administrative sections: (i) the activity plan for the upcoming period; (ii) descriptions of participation in scientific events using FAPESP funds; and (iii) references to individual scholarship summary reports.