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Today, changing framework conditions of living and working in cities drive urban planning processes for refurbishment, notably at the level of neighbourhoods, and provide a window of opportunity to enhance resource efficiency and sustainable urban development. Indicators, as part of sustainability assessment methods, may support the identification of the most beneficial planning alternatives or the selection of measures. However, the fact that a multitude of indicators are proposed in the literature discourages their actual use and hampers a sound application for decision support. To tackle these challenges, a manual has been developed proposing a framework for the use of indicators in urban planning. In this contribution, the theoretical foundations of the proposed framework are analysed. A conceptual outline of the framework is presented, which as its core has a typology of indicators, and its embedding in urban planning processes is discussed. The framework combines a theoretically concise unifying structure with a flexible practical approach for application in diverse areas of resource efficiency. Thus, it shall enhance transparency as well as comparability in the use of indicators, foster communication between stakeholders and in the long run support the application of indicators and use of sustainability assessment methods as regular parts of urban planning.