This study examines the conflicting relationship between high awareness and limited competency in applying Sustainable Development Goal (SDG) 12 principles among students in Higher Education (HE). Although SDG 12 is acknowledged as a societal imperative and students exhibit a grounded understanding of these sustainability concepts, there is a scarcity of holistic integration of the necessary competencies for the application of SDG principles to real-world business contexts. This discrepancy necessitates the development of educational strategies that not only increase awareness but also improve practical competencies. This study explores the cognitive, affective, and behavioral pillars of student perceptions by employing a mixed-methods approach. The findings reveal a division among students into idealist and pragmatist groups regarding SDG 12 implementation, highlighting the need for pedagogical innovation and interdisciplinary integration. By bridging the gap between theoretical knowledge and practical application, this study contributes to equipping future leaders with the skills necessary to drive sustainable transformations in an increasingly complex world.