The awards recognise professionals who support people through the loss of their baby, and there are also categories to recognise families who have had to cope with bereavement.
Ms Davies, 27, is one of youngest female funeral directors at Co-op Funeralcare, which she joined in 2011.
Having gone through an ectopic pregnancy herself, she began lobbying local councils to offer free cremation services for infants and helped set up a support group for grieving parents and other people affected by child loss.
She also started engaging with hospitals and midwives to explain the services Co-op Funeralcare offers and enable everyone to join efforts to help grieving families. Her approach focuses on giving parents the time to create memories with their babies and to provide the resources and support required.
She was nominated by couple Catherine and David Bailey, who she helped arrange the funeral of their daughter Ella, who was ‘born asleep’ after difficulties during pregnancy.
She provided them with a cuddle cot, which allowed them to take their daughter home and spend time with her before the funeral.
Ms Bailey said: “Annabel’s compassion for bereaved parents and dedication to supporting them in every way possible is truly staggering – we were very touched by her thoughtfulness and attention to detail.
“Annabel went above and beyond the call of duty to ensure that we got the support that we needed, and the perfect funeral for our precious baby Ella. We will always remember the difference she made to us as a family, during the absolute worst of times and this award would be a well-deserved recognition of the amazing work she has done for us and so many other families.”
Ms Davies said: “I am truly touched and honoured to have been nominated for such a meaningful award. As funeral directors, we’re here to support people who are going through a heart breaking time. The Butterfly Awards are an important step to make people aware of the support available for people going through the loss of a child.”
The winners will be decided by public vote. The results will be announced at a ceremony in Kenilworth on 27 October.