1.3.1 The selection of four jurisdictions: Sweden and the Netherlands; Brazil and the United States

This research focuses on four countries, two with a mandatory approach to sustainability reporting, and two countries with a voluntary approach to sustainability reporting. The first group is composed by Sweden and the Netherlands. Both countries have included norms in their jurisdictions with the aim at controlling the environmental, social and governance impacts of listed companies; the second group is composed by Brazil and the US, which have a voluntary approach to sustainability reporting. In order to answer the first sub-question “What is the state of the art and the shortcomings of sustainability reporting?” to understand which model of sustainability reporting is more effective, four jurisdictions were chosen for conducting a comparative research on sustainability reporting, Sweden, the Netherlands, Brazil and the US. The four countries have different legal and financial backgrounds, and different economic growth. That is why their approach to sustainability reporting differs. A comparative research (Chapter 4) between these four jurisdictions allows for a better understanding of the development of sustainability reporting.1

Below, sections 1.1 and 1.2 explain the reasoning behind the selection of these countries as the focus of the research.