Sustainable development is a key component in urban studies. Earth Observation (EO) can play a valuable role in sustainable urban development and planning, since it represents a powerful data source with the potential to provide a number of relevant urban sustainability indicators. To this end, in this paper we propose a conceptual list of EO-based indicators capable of supporting urban planning and management. Three cities with different typologies, namely Basel, Switzerland; Tel Aviv, Israel; and Tyumen, Russia were selected as case studies. The EO-based indicators are defined to effectively record the physical properties of the urban environment in a diverse range of environmental sectors such as energy efficiency, air pollution and public health, water, transportation and vulnerability to hazards. The results assess the potential of EO to support the development of a set of urban environmental indicators towards sustainable urban planning and management.