Contemporary business world is now facing a challenge, a shift from traditional innovation to eco-innovation. Organizations need to recognize the importance of environment in any aspect of innovation. This paper aims to deduce the drivers of eco-innovation from the overview of existing literature and empirical study to provide an understanding of the organization aiming towards eco-innovation. The aim of this thesis is to identify the drivers of eco-innovation and objectives being able to understand and review the contribution of innovation and eco-innovation as separate entities.This research is limited to the investigation of drivers of eco-innovation in one single organization i.e. Tekniska Verken, Linköping. Conceptual model of drivers of eco-innovation is created from previous research and verified through empirical study. The model of this research is to outline the three categories of drivers within the limit and scope of this analysis. However modification of the model on the basis of additional drivers has been duly appreciated and elucidated to reflect reality of the research.