The Pioneer in Environmental Commodity Infrastructure
APX has unparalleled experience in partnering with regulators, government entities and not-for-profits around the globe in developing and administering market-based programs. Our expertise spans design, development, implementation, hosting and operations as our platform provides a complete end-to-end solution for our clients.
We currently support eight different energy tracking systems and three different carbon offset tracking systems and have been providing these services for over 17 years.
Globally, we support over 4,000 account holders, have registered over 36,000 projects and have issued over 2 billion instruments.
Creating a market-based solution that generates an environmental commodity and drives price formation for environmental attributes is tremendously powerful. The amount of capital deployment and environmental progress spurred by generating a price for environmental attributes over the last decade has been overwhelming. Flawlessly starting such a program is equally daunting and that is where APX can help. In advance of any program launch, APX partners with policy engaged groups to discuss how technology can support the program goals. What concerns and issues will be critical to measuring program success?
If you are tasked with launching a new program, oftentimes the legislation or mandate driving the program formation will leave you with a list of unanswered implementation questions. More importantly, what are the questions or risks you may not be aware of yet. APX’s unequaled experience will be able to provide you a perspective of differences and similarities with your new program. APX has helped implement every US-based renewable portfolio standard across 30 states. Our “Environmental Program Launch Toolkit” is stocked with the time-tested processes necessary to make regulation come to life.
Risk Management from the only Environmental Commodity Infrastructure Provider with a SOC2 designation.
Your environmental commodity program will likely garner a great deal of attention – from good and bad actors alike. Most environmental commodities are unregulated and thus you need to apply your own layer of self-regulation around your program. It all starts with a robust know-your-client (KYC) process. The easiest way to ensure your program isn’t used for illicit activities is to keep the bad actors out. APX has been administering a stringent KYC process for over 10 years and maintains the deepest database of environmental market participants. We will walk you through your key decisions with a time-tested risk/reward framework.
Threats manifest from other sources as well. APX employs a multi-layer IT security approach and we constantly challenge ourselves to stay ahead of the security curve. High standards for maintaining data confidentiality is a priority at APX. We’ve built these trusted relationship through our delivery of reliable systems.
Recently, APX has successfully completed a Service Organization Controls (SOC) 2 Type II examination related to security, availability and processing integrity principles defined by the American Institute of Certified Public Accountants (AICPA). We worked with MossAdams LLP, an independent certified public accounting firm, to perform an in-depth audit of the control objects and activities for APX. The Type II audit validates the strength of our controls over time and highlights our ongoing commitment to security. If you’d like to request a copy of the report, please contact your sales representative.
Stakeholder & Policy Management:
Your program is dynamic and will evolve across time. APX has crafted many stakeholder management processes and can also take the lead in stakeholder management processes if necessary. Keeping up with the evolving needs of your constituents is key from fine tuning market rules, operational processes, or building new technology functionality.
Additionally, once your initial environmental commodities offer quality price signals to the marketplace, it is likely that additional instruments will be launched in the form of additional classes of commodities to further the overall objectives of the program. APX can ensure that this evolutionary process is interwoven into the existing program without compromising current activities.
Once the program is up and running for a period of time and the environmental commodity has reached a stage of proper price signal, a whole new set of challenges emerge. It is likely that you will be dealing with additional user volume which will stress administrative processes. It also means that the program will garner greater interest and will assume additional responsibilities.
- Operational Excellence: As user activity ramps up, keeping costs down and operational activities streamlined will become critical. APX utilizes data-intensive operational management approach to track and report activity while getting ahead of any operational bottlenecks.
- Ongoing user training: training at the launch of the program is critical but your success will guarantee a never-ending stream of new participants need to brought up to speed. APX can help craft training utilizing a variety of media from webinars to training videos
- Superior client service: no level of training or super technology can prevent the need to speak with a knowledgeable client service rep when you need an answer NOW. APX’s client service team has a combined 72 years of environmental markets experience.
Distributed Ledger Technology and the Future of Environmental Commodities
Many industries have been swept up in the “blockchain hype phase” including environmental commodities. Many blogs and white papers have been written about the promise of blockchain technology (aka distributed ledger technology) as it relates to renewable energy credits, carbon offsets or guarantees of origin. We agree; distributed ledger technology has the promise of reinventing a variety of industries including financial services, energy, and yes environmental commodities. APX is investing substantial research into blockchain/distributed ledger technology but we prefer to avoid the buzzwords and the hype.
We take a more fundamental approach to this promising trend versus attempting to chase cool new technology. Much of the cost in operating environmental commodity infrastructure lies in validating information from upstream systems such as meter data and project eligibilities. The true promise of blockchain and distributed ledger technology in the context of environmental commodity platforms is allowing these platforms to establish trusted relationships with upstream information sources without having to revalidate it. APX is attempting to work with several promising energy meter data blockchains in the hopes of driving positive change for market participants.