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Purpose

This study aims to address the persistent knowledge–action gap in sustainability education by implementing challenge-based learning (CBL) to transform students’ theoretical awareness into applied competencies.

Design/methodology/approach

A diagnostic survey (n = 108) assessed students’ sustainability knowledge, followed by two redesigned interdisciplinary undergraduate courses (n = 142) using the CBL framework. Students worked in 36 teams on real-world challenges. Pre–post surveys, knowledge quizzes and qualitative feedback were analyzed.

Findings

Students’ self-reported sustainability understanding increased by ∼48%, while their perceived ability to propose solutions rose by ∼53% (p  < 0.001). Objective knowledge scores improved significantly. Qualitative results highlighted enhanced motivation, collaboration and agency.

Research limitations/implications

Results are based on a single private Mexican university and short-term assessments. Longitudinal studies are needed to evaluate retention and real-world transfer of competencies.

Practical implications

CBL provides a replicable framework for integrating sustainability into diverse curricula. Universities can adapt this approach to foster active, interdisciplinary engagement and improve graduate employability.

Social implications

Student-led projects extended beyond campus, engaging local communities and stakeholders in tangible sustainability initiatives, thereby bridging the campus–community gap.

Originality/value

This study offers empirical evidence from Latin America on how CBL can effectively transform sustainability from an abstract concept into a lived, actionable competence.

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