In order to regulate natural processes and control the scale of human activities, sustainability assessment needs to be integrated into urban planning. In this context, indicator-based sustainability assessment tools are fundamental instruments that provide information to support policy and decision-making. Indicators are necessary to monitor the implementation of the policies and provide feedback needed to accomplish the desirable state of sustainable urban development. This paper aims to explore the role of indicator-based sustainability assessment in policy and the decision-making process. Therefore, it reviews the identified sustainable development indicator initiatives and addresses the research gaps in the literature for future improvement of sustainability assessment frameworks. It concludes with a discussion that the major problem in sustainability assessment lies in the gathering of reliable and accessible data.

Purpose: As a consequence of rapid urbanisation and globalisation, cities have become the engines of population and economic growth. Hence, natural resources in and around the cities have been exposed to externalities of urban development processes. This paper introduces a new sustainability assessment approach that is tested in a pilot study. The paper aims to assist policy‐makers and planners investigating the impacts of development on environmental systems, and produce effective policies for sustainable urban development.Design/methodology/approach: The paper introduces an indicator‐based indexing model entitled “Indexing Model for the Assessment of Sustainable Urban Ecosystems” (ASSURE). The ASSURE indexing model produces a set of micro‐level environmental sustainability indices that is aimed to be used in the evaluation and monitoring of the interaction between human activities and urban ecosystems. The model is an innovative approach designed to assess the resilience of ecosystems towards impacts of current development plans and the results serve as a guide for policy‐makers to take actions towards achieving sustainability.Findings: The indexing model has been tested in a pilot case study within the Gold Coast City, Queensland, Australia. This paper presents the methodology of the model and outlines the preliminary findings of the pilot study. The paper concludes with a discussion on the findings and recommendations put forward for future development and implementation of the model.Originality/value: Presently, there is a few sustainability indices developed to measure the sustainability at local, regional, national and international levels. However, due to challenges in data collection difficulties and availability of local data, there is no effective assessment model at the micro‐level that the assessment of urban ecosystem sustainability accurately. The model introduced in this paper fills this gap by focusing on parcel‐scale and benchmarking the environmental performance in micro‐level.

This paper introduces a policy-making support tool called ‘Micro-level Urban-ecosystem Sustainability IndeX (MUSIX)’. The index serves as a sustainability assessment model that monitors six aspects of urban ecosystems – hydrology, ecology, pollution, location, design, and efficiency – based on parcel-scale indicators. This index is applied in a case study investigation in the Gold Coast City, Queensland, Australia. The outcomes reveal that there are major environmental problems caused by increased impervious surfaces from growing urban development in the study area. The findings suggest that increased impervious surfaces are linked to increased surface runoff, car dependency, transport-related pollution, poor public transport accessibility, and unsustainable built environment. This paper presents how the MUSIX outputs can be used to guide policy-making through the evaluation of existing policies.