Formaldehyde and other embalming ingredients can eventually leech from the embalmed body (if buried) into the neighboring soil, particularly when a coffin breaks from time and slow decomposition. This can contaminate local groundwater supplies in areas where locals are near cemeteries. This overall imbalances and contaminated the water table of many areas. 

Embalming fluids disrupt the natural decomposition process and can kill many needed microorganisms in the soil (if buried) that would have helped in the decomposition process and give back to the environment. Soil health can be compromised as well in areas of high concentration of embalming usage and affect surrounding vegetation. 

When performing a cremation, embalming fluids vaporize, releasing their carcinogenic gases into the atmosphere. Cremation also emits large amounts of carbon dioxide, mercury (from dental work), and particulate matter, negatively contributing to climate change and overall air quality. 

During the embalming process itself, formaldehyde and other chemicals can and will take a more gaseous form, releasing fumes that are hazardous to the staff performing this operation. The presence of volatile organic compounds in embalming facilities like hospitals and funeral homes has raised health and safety concerns.