This chapter discusses the importance of collaboration among internal and external stakeholders in advancing sustainability goals within higher education institutions (HEIs). Successfully engaging and managing stakeholder relationships is crucial for driving sustainable innovations that align with the Sustainable Development Goals (SDGs). Nevertheless, progress can be hindered by challenges such as diverging interests, resource constraints, and a lack of sincere commitment, which may result in tensions like greenwashing and organizational hypocrisy. While stakeholder engagement in sustainability projects has been extensively studied in other fields, its application within HEIs remains underexplored. Existing research has primarily focused on early stages of sustainability co-creation, leaving a gap in understanding the challenges that may arise in the process and outcome stages. This gap is addressed through Donabedian’s Structure-Process-Outcome (SPO) model, which highlights the importance of stakeholder engagement throughout all project phases to overcome these challenges and ensure the success of sustainability initiatives.