Sustainability leadership is a concept coined at the intersection of the two domains which co-exist and mutually influence one another. The twenty-first century leadership cannot be envisioned without sustainability and in effect, sustainability without leadership could not have been driven. The EU’s solution to sustainability is leadership and to leadership is sustainability in an unique EU business and regulatory model. The European Union assumes an institutional global sustainability leadership role determined by scientific narratives and influenced by political discourses and business interests. The EU sustainable leadership model casts into light environmentally friendly industries, rather than focussing on environment per se, despite the common sense view. This perspective is based on institutional power and regulatory agency, aligning legal compliance with different interests. By bridging environment, business and society in a unique model, safeguarding the environment while simultaneously promoting economic growth, the EU shows sustainable leadership internally and externally. The leadership capacity means that the EU is able to “weaponise” its legislation, synchronising internal measures with external needs, via international treaties. Economic and climate diplomacy is counter-intuitive, EU being dependent of the imports of critical materials, food and energy, yet, making the suppliers dependent on trade with the EU. This chapter aims to examine to what extent the EU model provides sustainable leadership solutions as it bridges the gap between environment, industry and regulation, achieving internal EU targets and also attracting international followers, despite its internal incongruences.