Abstract
The sustainability of the water sector is a major concern. Compliance with current legislation alone does not seem to be enough to face major challenges such as climate change or population growth and concentration. The greatest potential for improvement appears to be when companies decide to step forward and go beyond environmental legislation. This chapter focuses on the environmental responsibility of small and medium-sized enterprises in the water and waste management sector, analyzing the drivers that lead these firms to adopt more sustainable and innovative practices. Market pull has a low incidence in encouraging environmental responsibility, whereas values and the strategic decisions of entrepreneurs seem to be decisive. Policy makers should prioritize subsidies over fiscal incentives because they show greater potential to promote the adoption of environmental responsibility among these firms.
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