Growing awareness about the environmental and social issues and pressure from all stakeholders has forced industries to adopt sustainability practices in their supply chains. Suppliers contribute significantly to establishing an effective sustainable supply chain. Hence industries need to evaluate its potential suppliers precisely on sustainability criteria. In this work, a two-phase decision model using Fuzzy Interference System (FIS) along with Fuzzy Kano philosophy for the sustainable environment has been proposed to select sustainable suppliers for a large scale industry. In the first phase, sustainability criteria clustering using fuzzy Kano model has been performed for the identification of ‘Must-be’ criteria in economic, environmental and social dimensions. Further, sub-criteria with quantified evaluation levels for Must-be criteria have been established. In the second phase, the three distinct Fuzzy Inference System (FIS) has been developed for evaluating the Sustainability Performance Index (SPI) values of each supplier in three sustainability dimensions. In FIS, the architecture of each model is modified in such a way that each FIS engine have to compute the minimum number of rules. Finally, weights are assigned to SPI in each dimension, and suppliers are ranked for final selection. Sensitivity analysis has been performed to demonstrate the robustness of the proposed decision framework. A sustainable supplier selection problem of the iron and steel industry of India has been investigated to show the effectiveness and applicability of the proposed decision framework.