Climate literacy is pivotal for preparing future leaders to address global climate challenges and build a sustainable future. Higher education institutions (HEIs) play a central role in embedding sustainability principles, particularly Sustainable Development Goal (SDG) 13 (Climate Action), into curricula to cultivate responsible leadership. This study examines the integration of SDG 13 within the business curriculum at Delta University (UAE), assessing undergraduate students’ perceptions of climate education and how teaching methods shape sustainability leadership. Using a mixed-methods approach—a closed-ended survey and Q-methodology—the research analyzes students’ awareness, engagement, and subjective perspectives on pedagogical strategies. The results reveal a disconnect between theoretical knowledge and students’ ability to apply these principles in real-world business contexts. While students acknowledged climate action’s importance and supported active learning pedagogies (e.g., case studies, simulations), skepticism persisted about SDG 13’s applicability to business operations. The findings highlight the need for curricular reforms, aligning curricula with national sustainability strategies (e.g., UAE Net Zero 2050) to bridge theory and practice. This research advocates for HEIs to prioritize climate competencies, ensuring that graduates can address environmental challenges through actionable frameworks. By transcending symbolic commitments, HEIs can empower students to lead regionally and globally, advancing sustainability education’s role in achieving equitable, low-carbon societies.