Purpose: This paper aims to assist higher education institutions (HEIs) in their decision-making process to define initiatives and foster research projects contributing to sustainable development (SD) and minimizing the deficits found in the municipalities. Design/methodology/approach: A documental analysis was performed to select HEIs and Brazilian regional development indicators. Then, the assessment of the sustainable and institutional performance of Brazilian municipalities that have HEIs consisted of three parts: clustering with an unsupervised machine learning model, ranking with a hybrid multi-criteria decision making method and visualization of sustainability performance with the dashboard. Findings: The critical analysis of institutional and sustainability indicators contributes to a more active role of HEIs in matters of social responsibility, with a more holistic view of the performance and quality of municipal education. Furthermore, this critical analysis creates a scenario where HEIs can develop public policy proposals in partnership with the government to mitigate the main issues identified. Social implications: With this study, HEIs will be able to direct their actions to minimize the deficits found in the municipalities, consolidating their social responsibility. Originality/value: This study proposes a new decision-support tool with a dashboard of indicators so that HEIs can foster research projects with a focus on regional SD.