What Is the SWISOX Traffic Light System?

Why We Built It

Sustainable finance doesn’t suffer from a lack of labels. Quite the opposite — it suffers from too many. ESG ratings, proprietary scores, voluntary disclosures… they’ve created a fragmented, opaque landscape that often raises more questions than it answers.

So why build something new?

We didn’t.

We’re not inventing another framework. We’re not adding noise to the system.

The Traffic Light System is built entirely on what already exists — specifically, the most advanced and ambitious sustainability reporting framework in the world: taxonomy-based reporting, backed by the European Union.

Thousands of companies are already required to report in line with the EU Taxonomy and CSRD. Our role at SWISOX is to take that rich, structured data — and turn it into something that’s actually usable.

Instead of leaving sustainability disclosures buried in PDFs or trapped in reporting portals, we classify companies using a simple, visual system: Green. Amber. Red.

It’s not a score. It’s not a label. It’s a translation layer — helping investors, founders, and the public understand where companies stand on the path to real sustainability.

What Is the Traffic Light System?

The Traffic Light System (TLS) is a public-facing classification tool that helps people understand how companies perform against core sustainability criteria — using colors, not acronyms.

We group companies into three categories:

  • 🟢 Green — These companies meet high standards of sustainability based on taxonomy-aligned revenue, exclusions, and public reporting.

  • 🟠 Amber (coming soon) — These are companies in credible transition. They don’t yet meet all criteria but are on a realistic path forward.

  • 🔴 Red (coming soon) — These companies fall short of minimum environmental or social safeguards and are currently not investable under most sustainability mandates.

Right now, we’ve launched the Green List — the starting point. Amber and Red lists are in development and will be released in the coming months.

Why a Traffic Light?

Because this system isn’t about financial abstraction — it’s about helping people make better decisions.

The traffic light is:

  • Universal — No need for a finance degree or ESG glossary

  • Intuitive — Everyone understands red, amber, and green

  • Usable — Especially for retail investors, founders, and journalists who want clarity

We didn’t invent a new language — we just translated what companies are already saying into something people can actually use.

What Makes a Company Green?

Companies on our Green Light List must meet rigorous, transparent criteria that reflect not just ambition — but real-world alignment.

Green Light List Criteria (2025 edition):

  • 55%+ revenue aligned with the EU Taxonomy

  • No coal, oil, or new fossil fuel projects

  • Revenue exclusions for weapons, tobacco, and other socially harmful activities

  • Third-party verification or assurance (Tier 1 and 2)

This is not about perfection. It’s about meeting the strongest existing benchmark — and doing the work to stay aligned.

Explore the criteria in detail

What’s Coming Next: Amber and Red

Sustainability isn’t binary — and the future of finance won’t be either.

We’re currently building out:

  • 🟠 Criteria for The Amber List, focused on companies in credible transition, and

  • 🔴 Criteria for The Red List, companies that do not meet baseline sustainability safeguards

These lists will help fill in the full picture — not to shame or exclude, but to provide direction. We want this system to reflect reality: progress isn’t linear, and the transition will be messy.

The Traffic Light System is our way of mapping that journey — not with arbitrary scores, but with signals.

🔎 Explore the Green Light List

70+ taxonomy-aligned companies, already mapped and verified.

This Is Just the Beginning

This isn’t just a tool. It’s a work-in-progress — and a call for collaboration.

We know that simplifying sustainability into three colors is bold. But we believe that simplicity, if built on rigor, is a feature — not a flaw.

Because this isn’t about replacing ESG. It’s about building what comes next.

A system grounded in real company practice. A system that evolves.

A system that helps capital flow where it can do the most good.

Join the Movement

🟢 Browse the Green List → traffic.swisox.com

📊 Explore the data and criteria → studio.swisox.com

🗞️ Get updates as the Amber and Red lists roll out → Subscribe to the newsletter

Disclaimer: This post is for informational purposes only and does not constitute financial advice or a recommendation to invest in any company or financial product.

Previous
Previous

Inside SWISOX Data Studio

Next
Next

The Death of ESG: Why Taxonomy Reporting Is Taking Over