The number of British universities divesting from fossil fuels has leaped to 43, a quarter of the total. The surge means the UK leads the world in campus action to pull university funds from oil, gas and coal.

Financial institutions and charities are also divesting and at least $2.6tn (£2.1tn) of assets are covered by such pledges around the world. Scientists have shown that most fossil fuel reserves cannot be burned without dangerous climate change. Campaigners argue this makes fossil fuel companies bad investments on both moral and financial grounds.

The total number of UK universities that are divesting was published on Tuesday by the student group, People & Planet. It found 16 new institutions have committed to divestment, taking the total funds affected to more than £10bn.

Most committed to sell off all fossil fuel investments, including the University of Kent, University of Lincoln, Cardiff Metropolitan University and Manchester Metropolitan University. Others committed to divest the most polluting investments – in coal and tar sands – including the University of Sussex, Aston University and Goldsmiths University of London.

Many leading universities had already pledged to divest, following student campaigns, including Oxford, Edinburgh and the London School of Economics. Kings College London initially rejected divestment calls, despite the intervention of Archbishop Desmond Tutu, a former student, who said in 2014: “People of conscience need to break their ties with corporations financing the injustice of climate change.” In September, KCL agreed to drop its most polluting investments.

“UK universities are world leaders on cutting-edge research into climate solutions and have a particular responsibility in shaping our future society’s sustainability,” said Amoge Ukaegbu, at People & Planet. “So it’s not surprising they have realised that to safeguard civilisation, they must turn their backs on a morally and financially bankrupt industry.

“The Fossil Free movement has grown exponentially with students and universities at its core, pioneering a new way for public institutions to be truly independent of the fossil fuel economy and in doing so, trailblazing a path for wider society to follow.”

The fossil fuel divestment campaign began in the US, where 35 educational institutions have joined, but it has now been overtaken. “UK universities are now world leaders in divestment,” said Andrew Taylor at People & Planet. “We have an advantage over our friends in the US as the British public hasn’t been targeted to the same extent by big-oil-funded climate denial.”

However, only one in four UK universities are on track to meet their carbon reduction targets by 2020. Teams leading environmental initiatives are being cut and sustainability strategies have not been renewed, according to the results of the 2016 People & Planet University League, with the lack of government funding also blamed for the stalling of energy-saving schemes.