TOWARDS
SUSTAINABLE
ECONOMIC
AND FINANCIAL
MANAGEMENT
IN THE FUNERAL SECTOR
By Nuria Capdevila, Founder & CEO CIRCLE Corporation, Spain
This article explores how sustainable economic and
financial management is reshaping the sector’s
future, creating shared value for businesses,
families, and society at large.
Sustainability as a competitive
advantage
In Europe, sustainability and competitiveness are
no longer opposing forces but strategic allies.
The Corporate Sustainability Reporting Directive
(CSRD)1, introduced in 2021, marks a turning point:
sustainability reports now carry the same weight
as financial statements. The technical adjustments
introduced by the Omnibus Regulation2, adopted
on 7 February 2025, reinforce the goal of
transformation – not mere compliance.
This regulatory framework extends through the
“value chain” principle to the entire business
ecosystem, including Small and Medium-sized
Enterprises (SMEs) within the funeral sector.
Funeral homes, cemeteries, and crematoria
now face both the challenge and opportunity of
transforming their management models.
Financing funerals: a dual impact
European regulation produces a twofold effect.
Firstly, it requires funeral companies to align
reporting with ESG criteria. Secondly, those working
with insurance providers – designated as public
interest entities – must also comply as part of their
value chain.
In Spain, this requirement is pronounced due
to widespread funeral insurance (47% of the
population3) and vertical integration between
insurers and funeral groups. For families,
insurance provides financial security and
planning certainty, while businesses benefit from
stable revenue streams. Italy and Portugal exhibit
similar structures.
Across Europe, financing models vary significantly.
In some countries, funeral allowances
provide basic coverage, but often fall short of
comprehensive service costs. Insurance models,
when designed with sustainability principles,
can better address both family needs and
business stability. The optimal solution combines
affordability for families with sustainable
business practices.
Sustainable financial management:
the backbone of change
In this new paradigm, sustainability becomes
a key management strategy integrated into all
economic and financial decision-making, helping
reduce costs for both providers and families.
SUSTAINABILITY
The real cost lies not in
implementing financial
sustainability
– but in failing to do so.
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No. 110 – SUMMER 2025 | THANOS MAGAZINE