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FIAT-IFTA is the only internationally governed Funeral Federation with National, Active and Associate Members in more than 80 Countries.
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.
Would you like to read the whole article?
Read the summer issue of THANOS magazine - you can read online at pages 28-30
FIAT-IFTA is the only internationally governed funeral Federation with National, Active And Associate Members in more than 80 countries.
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