Independent accountability mechanism
Multilateral development banks and other development agencies have adopted environmental and social safeguard policies setting the standards for the provision of project finance. Each institution has also established independent accountability mechanisms, variously functioning to ensure compliance with the applicable safeguards, to facilitate communication with affected communities, to advise management regarding the application of the obligations involved, with a view to resolving project-related disputes. IAMs are central to the implementation, interpretation, and ongoing elaboration of safeguard policies. Thus it became essential for sustainable development for environmental and social good governance. To know more, you must land on Sustainable Finance.