Digital transformation and sustainability are but two developments in a society 5.0 that challenge businesses to rethink their business models. Sustain-able business model innovation should enable companies to operate within plan-etary boundaries while ensuring their long-term success. Following a design-based approach, this action-oriented research addresses how higher education in-stitutions can offer educational initiatives that strengthen students’ and organiza-tions’ capabilities for sustainable business model innovation. This paper confirms and addresses the need for more research on collaborative, inter- and transdisci-plinary educational approaches for sustainable business model innovation with students and organizations.