Pressure-State-Response (PSR) model is one of the most commonly used models for environmental impacts assessment. As an effective tool for strategic management and performance evaluation, Balanced Scorecard (BSC) has been widely applied in the management field. PSR and BSC share the similar principles such as systematic, causality and sustainability oriented. Furthermore, BSC features equilibrium and dynamics. It is a feasible and innovative approach to establish a comprehensive environmental assessment framework by combining BSC and PSR. By placing the customer indicator on the top layer and following the PSR principle on the second layer, one model was designed to examine the impact of urbanization on the air environment in Shandong Province from 2005 to 2009 with factor component analysis. The results showed that urbanization and air environmental sustainability has been an upward trend in Shandong. The sustainable development level is low in Shandong presently, which provides a large potential for further improvement. This study is a useful reference for policy makers in terms of economic and environmental management.