This article highlights the role of sustainability appraisal for Higher Education Institutions (HEIs). Traditional HEI appraisal systems lack a way to assess the integration of sustainability principles reflecting societal needs with the consequences of research, education and management of HEIs. Two appraisal systems are discussed. The Austrian Sustainability Award is a first national attempt for sustainability appraisal for HEIs. The Graz Model for Integrative Development provides a tool for analysing the involvement of people (staff, students as well as society) in transformative processes in higher education. Using the five principles of the Graz Model in sustainability appraisal overcomes the problem of not recognising the social impact of a HEI in its assessment. The model looks at how society is involved and its needs reflected in an institution’s research, management and outreach. Results of this paper can be used for the development of new sustainability appraisal systems and reflect on existing ones.