Higher education institutions (HEIs) have a pivotal role in fulfilling the social dimension of sustainability and contributing to a complex changing society. To meet these challenges, Malmö University has in interdisciplinary groups researched the role of challenge-based learning (CBL) in relation to staff, students, disciplines, and stakeholders. This position paper is based on that work. Malmö University argues that with a CBL approach, HEIs will actively contribute to the building of a sustainable learning society through collaboration in education, research, and innovation. This paper theoretically explores the CBL approach as a collaborative learning exchange within HEIs and society at large. CBL is defined through eight key elements, clustered as entities of three domains: diversity and inclusion, co-creation and collaboration, and change agents and contextual challenges. These are discussed and empirically exemplified with the purpose to support designing, planning, and accomplishing CBL in teaching and learning in HE for a global learning society.