From my trusty "Living Green 365 Ways to Make a Difference" calendar (email edition, of course). If you have to use a pencil why not try one of these out?
"Tree Smart makes pencils directly out of old newspapers, without any mulching or chemicals. They wrap the paper around the graphite and bind it with an adhesive that dries hard as wood, so the pencil is easy to sharpen. Funky-looking, too.
Do your part: One sheet of recycled newsprint makes four pencils. More information is available at www.treesmart.com."