Institutionalising Sustainability-Driven Impact Measurement Framework for Development Financial Institutions (DFIs) in Malaysia

This study highlights the growing role of Development Financial Institutions (DFIs) in achieving the 2030 SDGs, while noting that their developmental impact is often undervalued due to an overemphasis on financial performance.

It argues that DFIs should integrate sustainability into their core strategies by adopting impact measurement frameworks that assess financial, social, and environmental outcomes. However, such tools are still not widely implemented.

Findings show that DFIs need to align with national priorities, strengthen institutional capacity, and adopt clear sustainability KPIs to improve accountability and effectiveness.

Overall, the study concludes that sustainability should be a core principle in DFIs’ operations to enhance long-term economic and social resilience.