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Sephora is primarily reducing its CO2 impacts by using renewable energy contracts. By transitioning to renewable energy sources such as wind, solar, or hydroelectric power, Sephora is able to lower its greenhouse gas emissions significantly. The use of renewable energy helps in moving away from fossil fuels, which are a primary contributor to carbon dioxide emissions. Implementing contracts that focus on sustainable energy not only aligns with environmental goals but also contributes to the overall corporate responsibility strategy of Sephora, positioning it as a leader in sustainability within the retail sector.

In contrast, promoting discount products, reducing the number of stores, or increasing packaging may not directly address the carbon footprint associated with energy consumption and corporate sustainability efforts. Such strategies may tackle different aspects of business operations but do not specifically focus on reducing CO2 emissions in the same impactful way that renewable energy does.