Challenge-based learning (CBL) is a multidisciplinary approach that encourages students to work actively with peers, teachers and stakeholders in society to identify complex challenges, formulate relevant questions and take action for sustainable development. In this paper, it is argued that CBL can be viewed as an evolution of the Conceive, Design, Implement, Operate concept, expanding as well as deepening the learning experience. The study reported on investigates the multiple aims of a particular CBL environment (the Challenge Lab at Chalmers University of Technology), which are to combine significant student learning and societal transformation. The results show that the students perceive that they have developed deep skills in problem formulation and sustainable development, as well as working across disciplines and with different stakeholders. Moreover, the study shows that although few student projects reach implementation stage, there is a potential for societal impact both during and after the Challenge Lab learning experience.