Caterpillar has published tightened climate targets in its latest sustainability report, increasing competitive pressure on European manufacturers. Volvo Construction Equipment must, as a direct competitor in the premium segment, realign its sustainability strategy to remain competitive against the US market leader. Both manufacturers compete particularly for environmentally conscious fleet managers and construction companies in the large excavator and wheel loader segments. The industry is increasingly responding to stricter EU emissions regulations and customer requirements regarding CO₂ accounting across the entire machine lifecycle.